(Karoon Gas Australia Ltd., 21.Apr.2015) – Karoon Gas Australia Ltd. announced that a 699 foot (213 meter) gross oil column has been confirmed in the Echidna-1 exploration well in Block S-M-1102, Santos Basin offshore Brazil from wireline pressure data across the Paleocene and Maastrichtian aged reservoir intervals. Physical oil samples recovered measure a 39.5 degree API oil gravity.
The Echidna-1 exploration well had completed the wireline program and was preparing for the commencement of a production testing program within the Paleocene reservoir section.
“The Echidna discovery represents another significant achievement for Karoon. Echidna adds incremental resource to Karoon’s discovered Kangaroo oil field which further supports Karoon’s ambitions to develop an integrated production hub in the Santos Basin,” said Karoon Managing Director Robert Hosking.
Wireline Results
The Paleocene reservoir interval has a gross thickness of 246 feet (75 meters), 177 feet (54 meters) net, with an average porosity of 25 percent. Oil recovered from wireline MDT samples is 39.5 degree API with a GOR of 750 standard cubic feet per barrel.
The Maastrichtian reservoir interval has a gross thickness of 371 feet (113 meters), 164 feet (50 meters) net, with an average porosity of 21%. A pressure defined oil gradient shows the Maastrichtian to have the same oil pressure gradient as the Paleocene reservoir, indicating that the oil API and GOR are very similar to the recovered Paleocene samples.
A deeper Maastrichtian oil column was also intersected in a separate 7 meter sand having an average 23% porosity. The interpretation of oil is supported by natural shows and a pressure-defined oil gradient.
The Echidna-1 exploration well is located in Block S-M-1102, on the east side of the “Emu” salt 25iaper complex, and tested a similar salt flank play first proven by Kangaroo-1 and later confirmed by Kangaroo-2 and its two sidetracks. Results of Echidna further substantiate the validity of the salt flank play.
The JV will conduct a production testing program over the Paleocene reservoir section which is set to commence as soon as preparations are complete, expected later this week. The Maastrichtian reservoir section is planned to be tested as part of the follow up drilling program.
A decision with respect to the second well option will be made in the coming weeks.
Forward Plan
Over the coming months Karoon will continue to conduct the required geoscience and engineering work to characterize the Kangaroo and Echidna oil fields. Further appraisal drilling is planned to commence in the near term with pre-FEED studies to be conducted in tandem with drilling.
Partners in the block S-M-1102, Santos Basin, Brazil include: Karoon (Operator, WI 65%) and Pacific Rubiales Energy Corp. (WI 35%).
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