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Karoon flows oil at Kangaroo-2 well tests offshore Brazil

06th January 2015

Karoon Gas has completed production testing over the Paleocene A, B and C oil bearing reservoirs of its Kangaroo-2 well in its jointly held Block S-M-1165 in the Santos Basin off Brazil (Karoon 65 per cent, Pacific Rubiales Energy 35 per cent)

Karoon Gas has completed production testing over the Paleocene A, B and C oil bearing reservoirs of its Kangaroo-2 well in its jointly held Block S-M-1165 in the Santos Basin off Brazil (Karoon 65 per cent, Pacific Rubiales Energy 35 per cent)
The Kangaroo-2 appraisal well is located in exploration Block S-M-1165, approximately 300 metres up-dip and 4 kilometres south of Kangaroo-1 and is the first well in Karoon’s Santos Basin exploration and appraisal drilling campaign

Preparations are underway to commence a side-track program to better define the resource size and recovery factors.

“Karoon is very pleased with the production testing results from Kangaroo-2,” said Robert Hosking, Karoon managing director. “Based on the flow rates achieved in both the Paleocene and Maastrichtian reservoirs, a vertical production well could produce 6,000 to 8,000 stb/d from the combined reservoirs. In addition, horizontal production wells could be expected to produce at higher rates.”

Production test DST-2A was conducted in the Paleocene A, B and C sandstone reservoirs over the intervals 1,663- 1,681 mRT, 1,695-1,729 mRT and 1,735-1,753 mRT with a 12 -our main flow period.

The maximum oil flow rate attained was 3,700 stb/d (stabilised rate of 3,450 stb/d) through an 88/64” choke with a flowing tubing head pressure of 270 psia, a gas-oil-ratio of 540 scf/stb.

Production test DST-2 was conducted in the Paleocene C sandstone reservoir over the interval 1,735- 1,753 mRT. The maximum oil flow rate attained was 2,500 stb/d through a 44/64” choke with a flowing tubing head pressure of 425 psia and a gas-oil-ratio of 450 scf/stb. The well was then flowed on a 40/64” choke at a stabilised rate of 1,820 stb/d with a flowing tubing head pressure of 420 psia, a gas-oil-ratio of 450 scf/stb. At the end of a main 24 hour flow period, the well was shut-in for a 48 hour pressure build-up period.

DST-2A produced a 33° API oil with zero CO2, H2S, water or sand produced, whilst DST-2 produced a 31° API oil also with zero CO2, H2S, water or sand.

After the well testing string is removed and the Paleocene reservoirs are plugged back with cement and a cement retainer, the well will be side-tracked in both a down-dip and up-dip location in order to better define the resource size and recovery factors.

Side-track-1 will be drilled to a down-dip location to target the Paleocene and Maastrichtian reservoirs on the eastern side of an interpreted north-south trending fault, and to evaluate potential hydrocarbon accumulations in the Campanian.

Wire-line logs and a pressure survey will be conducted.

Side-track-2 will be drilled into Paleocene and Maastrichtian reservoirs in an up-dip location to test reservoir and hydrocarbon potential towards the salt wall. The information obtained from Kangaroo-2 will be important for assessing the commerciality of the Kangaroo oil field and will be valuable for a front-end engineering and design (FEED) phase bringing the project a step closer to commerciality.

The Kangaroo-2 appraisal well is located in exploration Block S-M-1165, approximately 300 metres up-dip and 4 kilometres south of Kangaroo-1 and is the first well in Karoon’s Santos Basin exploration and appraisal drilling campaign.

Following the completion of all operations on the Kangaroo-2 appraisal well, the rig will be moved to drill Kangaroo West-1 exploration well (the second firm well in the programme) and evaluate the prospect approximately 4.5 kilometres distant on the western side of Kangaroo salt structure. Due to the large size and proximity to Kangaroo, a successful outcome at Kangaroo West-1 would materially add to any possible development of the Kangaroo oil field.

The exploration and appraisal drilling campaign is expected to continue through first half 2015.

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