Karoon Gas Australia Ltd is pleased to announce that a 213 metre gross oil column has been confirmed in the Echidna-1 exploration well from wireline pressure data across the Paleocene and Maastrichtian aged reservoir intervals. Physical oil samples recovered measure a 39.5 degree API oil gravity.

As at 0800 hrs AEST on 20 April 2015, the Echidna-1 exploration well had completed the wireline program and was preparing for the commencement of a production testing program within the Paleocene reservoir section.

Karoon Managing Director Mr. Robert Hosking said, “The Echidna discovery represents another significant achievement for Karoon. Echidna adds incremental resource to Karoon’s discovered Kangaroo oil field which further supports Karoon’s ambitions to develop an integrated production hub in the Santos Basin”.

Wireline Results

The Paleocene reservoir interval has a gross thickness of 75 metres, 54 metres net, with an average porosity of 25%. Oil recovered from wireline MDT samples is 39.5 degree API with a GOR of 750 scf/bbl.

The Maastrichtian reservoir interval has a gross thickness of 113metres, 50 metres net, with an average porosity of 21%. A pressure defined oil gradient shows the Maastrichtian to have the same oil pressure gradient as the Paleocene reservoir, indicating that the oil API and GOR are very similar to the recovered Paleocene samples.

A deeper Maastrichtian oil column was also intersected in a separate 7 metre sand having an average 23% porosity. The interpretation of oil is supported by natural shows and a pressure-defined oil gradient.

The Echidna-1 exploration well is located in Block S-M-1102, on the east side of the “Emu” salt diapir complex, and tested a similar salt flank play first proven by Kangaroo-1 and later confirmed by Kangaroo-2 and its two sidetracks. Results of Echidna further substantiate the validity of the salt flank play.

The joint venture will conduct a production testing program over the Paleocene reservoir section which is set to commence as soon as preparations are complete, expected later this week. The Maastrichtian reservoir section is planned to be tested as part of the follow up drilling program.

A decision with respect to the second well option will be made in the coming weeks.

Forward Plan

Over the coming months Karoon will continue to conduct the required geoscience and engineering work to characterise the Kangaroo and Echidna oil fields. Further appraisal drilling is planned to commence in the near term with pre-FEED studies to be conducted in tandem with drilling.

Karoon holds a 65% interest in and is operator of the jointly held block S-M-1102, Santos Basin, Brazil. Pacific Rubiales Energy Corp. holds the remaining 35% working interest.