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Karoon contracts semisub drilling rig for Santos Basin operations

14th July 2014

Karoon has signed an agreement with members of the QGOG Constellation group for contracting the Olinda Star semi‐submersible drilling rig for work offshore Brazil

Karoon contracts semisub drilling rig for Santos Basin operations
The rig contract provides Karoon with two firm wells plus two option wells allowing maximum flexibility for further appraisal of the Kangaroo discovery

The Olinda Star has been contracted to complete up to four wells in Karoon’s 65 per cent owned and operated Santos Basin blocks, S‐M-1037, 1101, 1102, 1165 and 1166.

The rig contract consists of two firm wells (the Kangaroo‐2 appraisal well and the Kangaroo West‐1 exploration well) and two option wells. The drilling campaign is expected to commence during September 2014 with the Kangaroo‐2 appraisal well. 

“The primary objective of the drilling campaign is the appraisal of the Kangaroo oil discovery,” said Robert Hosking, Karoon executive chairman. “The Kangaroo2 appraisal well is designed to confirm the size of the oil column, reservoir continuity and properties, and flow rates for the Kangaroo  oil discovery. This information will be crucial for assessing the commerciality of the Kangaroo field, and on success, will be the basis for the ffront-end engineering and design phase.” 

The rig contract provides Karoon with two firm wells plus two option wells allowing maximum flexibility for further  appraisal of the Kangaroo discovery, including testing and appraisal of the Kangaroo West prospect in the event of successful drilling.

The initial two wells will satisfy Karoon’s 2014 Santos Basin drilling commitments as outlined in the Discovery Appraisal Plan, approved  by  the Agência Nacional do Petróleo,  Gás  Natural e Biocombustíveis (ANP) during December 2013. All the requisite approvals, regulatory or otherwise, have been obtained and long lead items are in place for up to four wells.  

Karoon’s wholly owned subsidiary, Karoon Petróleo e Gás Ltda, has entered into the drilling rig contract and currently owns a 65 per cent operating equity interest in Santos Basin blocks S‐M‐1037, 1101, 1102, 1165 and 1166. Pacific Rubiales Energy Corp is Karoon’s joint venture partner in the blocks with a 35 per cent equity interest. 

 

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