Karoon confirms oil discovery offshore Brazil

Karoon Gas Australia Ltd. (ASX:KAR) has confirmed an oil discovery offshore Brazil at the Kangaroo-1 well.

Offshore staff

MELBOURNE, Australia –Karoon Gas Australia Ltd. (ASX:KAR) has confirmed an oil discovery offshore Brazil at the Kangaroo-1 well. The well is in blocks S-M-1101 and S-M-1165.

Kangaroo-1 was drilled to 3,049 m (10,000 ft) and found a 25-m (82-ft) gross oil column in an Eocene reservoir 300 m (984 ft) downdip from the seismic defined trap crest. Wireline testing is ongoing and a drillstem test is under consideration.

Karoon plans wells two and three, Emu 1 and Bilby 1, for its Santos basin drilling program. These wells will be in blocks S-M-1102, S-M-1137, and S-M-1166.

The blocks are 112 km (70 mi) off the Santa Catarina region of Brazil south or Rio de Janeiro in 400 m (1,312 ft) water depth.

While Karoon holds 100% interest in the blocks, it has an agreement with Pacific Rubiales Energy Corp. (TSX:PRE) to divest 35% interest in blocks S-M-1101, S-M-1102, S-M-1037, AND S-M-1165. Pacific Rubiales also has an option to take 35% of block S-M- 1166.

1/25/2013

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