Karoon Lines Up Semisub Transocean Legend

- Karoon Lines Up Semisub Transocean Legend

Thursday, September 08, 2011
Karoon Gas Australia Ltd.

A drilling contract has been signed with Sedco Forex on Sept. 8 securing the Transocean Legend semi-submersible drilling rig to complete the planned Phase-2 Browse Basin exploration drilling program in the WA-314-P, WA-315-P and WA-398-P permits jointly held by ConocoPhillips and Karoon Gas. The contract comprises five firm wells (fulfilling permit commitments) with options for three additional wells (5-8 wells). Drilling is expected to commence in the fourth quarter of 2011 and is estimated to run for eighteen months to two years ConnocoPhillips is the operator of the jointly held WA-314-P, WA-315-P and WA-398-P Browse Basin permits containing the previously announced Poseidon and Kronos gas discoveries.

The five to eight well drilling program will target the Poseidon trend as well as surrounding prospects, including one prospect in WA-314-P late in the program.

The first well will be be Boreas-1, a crestal well in WA-315-P on a large tilted fault block east of the Poseidon-1 fault block. The results of the drilling campaign will allow the size and quality of the hydrocarbon accumulations within the exploration permits to be determined in preparation for a development decision. Karoon believes that the additional new prospects identified are of sufficient size that, if successful, would result in a meaningful increase in the capacity and economics of an eventual LNG project.

Pursuant to the 2006 Farm-in Agreement between Karoon and ConocoPhillips (Browse Basin) Pty Ltd, ConocoPhillips will be funding 80% of the drilling and testing costs for the initial $125 million of expenditure within WA-315-P.

Based on current forecasted costs Karoon will have sufficient capital at its disposal to complete all drilling activities for the planned program. Karoon is currently well advanced in the process of completing the farmout of its Santos Basin and Peruvian assets, and expects to have reduced financial exposure to both drilling campaigns. A list of potential farm-in partners will be shortlisted in the near future and negotiations are continuing.

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Karoon to Contract Blackford Dolphin for Santos Program

Karoon to Contract Blackford Dolphin for Santos Program

Thursday, May 05, 2011
Karoon Gas Australia Ltd.

Karoon, as operator of five blocks in the Santos Basin, on Thursday signed a letter of intent to contract with Dolphin Drilling Ltd, for the Blackford Dolphin semi-submersible drilling rig. The completion of the final drilling agreements is subject to final negotiations and is expected by the end of June 2011.

This letter of intent covers the drilling of three wells in Karoon's Santos Basin blocks, to begin in the first half of 2012. These will be located about 280 kilometers off the coast of the State of Sao Paulo, Brazil, in water depths of approximately 400m.

The Blackford Dolphin is a semi-submersible drilling rig, currently operating in Brazilian waters, and was the preferred drilling rig for Karoon's upcoming Santos Drilling Program. Karoon will be targeting several prospects in this drilling program along with satisfying its second period work commitments. Prospects within Karoon's Santos Basin Blocks contain several large drilling targets will be announced at the completion of seismic interpretation later in 2011.

Preparations are currently being carried out to obtain all the necessary regulatory and other approvals, long lead items have been ordered and a specialists team of drilling engineers has commenced well planning and pre-drilling engineering.

Karoon's wholly owned subsidiary, Karoon Petroleo & Gas S.A., has entered into the Letter of Intent and currently owns 100% of the Santos Basin Blocks 1037, 1101, 1102, 1165 and 1166.

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