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Karoon Gas strikes oil offshore Brazil

01st February 2013

Australian energy firm Karoon Gas makes oil discovery in Santos Basin

Karoon Gas strikes oil offshore Brazil
Executive chairman Bob Hosking said the company and effective 35 per cent partner Pacific Rubiales had decided to test the crest of the structure, where there is potentially a 350m gross hydrocarbon column

Energy firm Karoon Gas Australia has hit oil in Kangaroo-1, a well located in the Santos Basin, and confirmed a 25 metres gross oil column.  

The discovery was made in a hydrocarbon column higher in the structure. Drilling operations at Kangaroo-1 were part of a joint venture with Pacific Columbia Rubiales Energy, a Toronto based oil and natural gas producer and explorer.

Karoon Gas recovered ten reservoir fluid samples to surface, two of which were opened and preliminary measurements confirmed the oil at 42 degree API. Preliminary petrophysical analysis estimates reservoir porosity in the 25-32 per cent range, with permeability tested in two sands at 100-300 mD, the company said.

“Analysis of petrophysical and oil sampling flow and pressure data (from wireline DSTs) indicates that the Eocene reservoir found in Kangaroo-1 is of good quality and has the potential to flow at commercial rates,” Karoon Gas said in a statement.

Executive chairman Bob Hosking said the company and effective 35 per cent partner Pacific Rubiales had decided to test the crest of the structure, where there is potentially a 350m gross hydrocarbon column.

The company is now looking for a rig to drill the Kangaroo-2 well as soon as possible. The appraisal well will target the crest of the structure as currently mapped with the aim of providing an optimal location for reservoir evaluation and production testing of the field.

The Emu-1 well will be the next well to be drilled in the company’s Santos Basin exploration program, followed by Bilby-1. These wells are located in blocks S-M-1102, S-M-1137 and S-M-1166 and will evaluate multiple targets at Miocene, Eocene, Maaestrichtian, Campanian and Santonian levels.

Karoon Gas’ blocks in the Santos Basin are located 112 km off the coast at a depth of 400 m. The Australian company is the sole operator and owner of the blocks.