Karoon Gas Faces Setback as Brazil Well Doesn't Yield Oil

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?

Post 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.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
A&D Reservoir Engineer Advisor
Expertise: Reservoir Engineering
Location: Texas
 
Reservoir Engineering Manager - Reserves
Expertise: Reservoir Engineering
Location: Texas
 
General/Sales Manager - Chemicals
Expertise: Cementing|Chemical Engineering|Coil Tubing|Field Development|Fracturing|MWD / LWD|Petroleum Engineering|Pipeline Services|Research & Development|Slickline|Stimulation |Technical Sales|Well Servicing & Testing|Workover or Completion
Location: TX
 
search for more jobs

Brent Crude Oil : $50.68/BBL 0.35%
Light Crude Oil : $46.75/BBL 1.08%
Natural Gas : $2.73/MMBtu 3.01%
Updated in last 24 hours