SYDNEY - Karoon Gas Australia Ltd. faced a setback to its exploration offshore Brazil after a well in the Santos basin didn't unearth any significant oil reserves.
Despite early signs of oil in the Emu-1 well, drilled to a depth of 4,381 meters in a joint venture with Pacific Rubiales Energy Corp., further testing indicated its main reservoirs contained water instead of oil, Karoon said in a statement Monday.
"There is evidence that there may be some thin sand sections that may contain hydrocarbons, (and) sampling and analysis of these sands is continuing," Karoon said.
Emu-1 is the second well in the Brazilian exploration campaign. The first, Kangaroo-1, discovered oil and Karoon wants to drill another well, Kangaroo-2, nearby to assess that discovery. The joint venture also plans to drill another well, Bilby-1, in the Santos basin later this year.
Copyright (c) 2012 Dow Jones & Company, Inc.
WHAT DO YOU THINK?
Click on the button below to add a comment.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
More from this Author
Most Popular Articles
From the Career Center
Jobs that may interest you