Karoon, Conoco Slate Second Drilling Campaign for 2011

SYDNEY (Dow Jones), Mar. 2, 2010

Karoon Gas Australia Ltd. said Tuesday that its joint venture with ConocoPhillips (COP) will launch a second exploration campaign in the Browse Basin offshore Western Australia state next year, regardless of the results of current drilling.

The joint venture is currently drilling the Kronos-1 exploration well, the results of which will determine whether it drills any more wells in the current campaign.

If Kronos-1 is successful, the joint venture has an option to hire out its current rig to drill more wells immediately.

Regardless of the results of Kronos-1, Karoon said in a statement to the Australian Securities Exchange that the second campaign will commence during 2011 and continue into 2012.

"The whole future of the Browse Basin campaign does not hinge on this current well," a Karoon spokesman said.

Karoon said it expects drilling at its permits in Brazil's offshore Santos Basin to commence in early 2011 and drilling at permits in Peru to commence later that year.

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