Proteus-1 Drilling Continues in Browse Basin

Karoon Gas Australia Ltd provided an update on the drilling of Proteus-1 exploration well in Permit WA-398-P in the Browse Basin, 218 miles (350 kilometers) offshore from the north-western Australia coast.

At 06:00 WST July 19 Proteus‐1ST1 was drilling ahead in the 6.5 inch hole at a depth of 15,036 feet (4,583 meters).

Since the last update the 7.625 inch liner was cemented and pressure tested before running in hole and drilling ahead with the 6.5  inch drilling assembly.

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 Greater Poseidon gas discoveries. Karoon Gas Australia Ltd holds a 40 percent equity interest in permit WA‐315‐P and WA‐398‐P, and a 90 percent interest in permit WA‐314‐P.

Proteus‐1 is the third well in the exploration program. Proteus‐1 is located in permit WA‐398‐P on a large tilted fault block approximately 8.7 miles (14 kilometers) south south east of the Poseidon‐1 discovery well.

The Transocean Legend (mid-water semisub) is drilling the exploration well, which is operated by ConocoPhillips.

Upcoming Well Program

The exploration program, operated by ConocoPhillips, plans to utilize the Transocean Legend mid-water semisub for the entire campaign and is expected to continue through 2013.

A minimum of six wells will be drilled during the second phase Browse drilling campaign. The principal objective of the exploration program is to better define the size and quality of the hydrocarbon accumulations within the exploration permits which contain the greater Poseidon trend.

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

Ongoing progress reports

In addition to complying with its continuous disclosure obligations, Karoon proposes to provide fortnightly progress reports during drilling operations.


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