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Karoon gets green light for Brazil discovery plan

17th December 2013

Regulatory hurdle cleared for Karoon to contract a rig and commit to the next phase of offshore exploration and drilling

The exploration plan has been approved by Agência Nacional do Petróleo (ANP)
The exploration plan has been approved by Agência Nacional do Petróleo (ANP)

Karoon, the Australian oil and gas exploration company, said on Monday that its discovery appraisal plan for offshore blocks in southern Brazil had been approved by the ANP, Brazil’s regulator.


The plan covers blocks SM-1101, SM-1102, SM-1037, SM-1165 and SM-1166, Karoon said in a statement.


In 2014, Karoon will drill an appraisal well at Kangaroo-2 and an exploration well at Kangaroo West-1. It will also carry out seismic reprocessing and quantitative inversion (QI) studies on the Bilby discovery and the Emu and Emu East prospects, as well as undertake basin-modelling studies.


Work in 2015 and 2016 will depend on these studies’ results and could include QI studies at Kangaroo and Kangaroo West and drilling at Kangaroo-3, Kangaroo West-2, up-dip Emu-2 and / or Emu East-1.


The Kangaroo discovery is the priority focus of Karoon’s drilling campaign due to its favourable contingent resource size, oil quality and water depth. Analysis suggests contingent oil resources range from 135 million barrels to 489 million barrels, though further work is needed to confirm commerciality, Karoon said.


The Kangaroo-2 well will be 290 metres from the Kangaroo-1 exploration well and will be designed to confirm the size of the oil column and determine the reservoir continuity and properties in an updip setting.


Due to its prospective size, type and proximity to Kangaroo, the Kangaroo West-1 exploration well has also been prioritised and could add “meaningful resources” to any Kangaroo development, the company said.


Studies of the Kangaroo discovery have already started to fast-track any potential development decision. Karoon said a preliminary internal economic evaluation is highly supportive of a commercially significant project.