Karoon Gas Australia Ltd., an international oil and gas exploration firm with projects in Australia, Brazil and Peru, reported Wednesday that as at 2000 hrs BRST Nov. 18 drilling is ongoing in the 12.25 inch hole section at a current depth of 4,133 feet (1,760 meters) rotary table (RT) at Kangaroo-2 appraisal well in Block S-M-1165 block, Santos Basin, Brazil.
Kangaroo-2 penetrated the target Paleocene reservoir at 5,446 feet (1,660 meters) RT as indicated by increased LWD resistivity readings, elevated gas readings and oil shows seen in mud log cuttings from the reservoir section consistent with reservoir descriptions from Kangaroo-1.
Drilling will continue to total depth before running wireline logging designed to confirm the presence and extent of the hydrocarbon column. Coring and flow testing is expected to be undertaken upon a successful outcome from wireline logging.
Since the Nov. 14 Progress Report, BOP and equipment testing was completed, the cement shoe drilled out and drilling in the 12.25 inch hole section commenced.
The Kangaroo-2 appraisal well is located in block S-M-1165 and is the first well in the current Santos Basin exploration and appraisal drilling campaign. The well is designed to confirm size of the oil column, the presence and size of a possible gas cap, reservoir continuity and properties, and flow rates for the Kangaroo oil discovery. This information will be crucial for assessing the commerciality of the Kangaroo oil field and, upon success, will be the basis for the Front End Engineering and Design (FEED) phase bringing the project a step closer to commerciality.
The well is located approximately 984 feet (300 meters) updip from Kangaroo-1 and will test the thick reservoir sequence observed in all surrounding wells. Karoon is targeting a 1,148 foot (350 meter) plus gross hydrocarbon column in this well.
Karoon holds a 65 percent interest in and is operator of the jointly held S-M-1165 block, Santos Basin.
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