ConocoPhillips to Kick Off 2012 Browse Drilling Campaign

Karoon Gas Australia Ltd's 2012 drilling campaign is expected to commence during the first week of March 2012 when the drilling rig Transocean Legend (mid-water semisub) is mobilized by the Karoon/ConocoPhillips Joint Venture from the port of Dampier.

A minimum of five wells will be drilled during the exploration program which is directed principally at better defining the contingent resource size and characteristics of the greater Poseidon structure.

The first well, Boreas-1, is located in WA-315-P on a large tilted fault block approximately 2 miles (4 kilometers) south of Poseidon-1 and is expected to spud by mid-March 2012 and reach total depth some time later in the first half of 2012.

The second well, Zephyros-1, is located in permit WA-398-P on a large tilted fault block approximately 5 miles (8 kilometers) south west of  Kronos-1.

The third well, Proteus-1, is located in WA-398-P on a large tilted fault block approximately 9 miles (14 kilometers) south east of the Poseidon-1.

Additional well locations for the remainder of the program will be announced as they obtain Joint Venture approval.

ConocoPhillips 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.

Karoon Gas Australia Ltd holds 90% of permit WA-314-P, 40% of permit WA-315-P and 40% of WA-398-P.

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