Karoon awarded Brazil Santos Basin block Martin Kovacs, 28 Sep 2017

Karoon Gas Australia has advised that it has been awarded Block S-M-1537 in the offshore Brazil Santos Basin by the ANP (National Agency of Petroleum).

Karoon advised that Block S-M-1537 “is located in an existing oil-and-gas-producing province in close proximity to several oil-and-gas-producing fields, including Bauna and Piracaba to the north”, stating it believes it “provides exciting low-risk exploration, which has the potential for hundreds of millions of barrels of oil”.

“The block contains one main prospect, with the reservoir comprising Oligocene turbidite sands with very high porosity and permeability, as seen in the producing Bauna and Piracaba fields,” Karoon stated.

“Seismic analysis shows an excellent amplitude versus offset anomaly, supportive of the presence of trapped oil. The mapped area of the prospect covers a large portion of the block and is over 100 square km.”

In identifying the block, Karoon stated that it leveraged off its experience of the southern Santos Basin through the evaluation of the Kangaroo and Echidna discoveries.

“With future success, there are many synergies to be had with a potential joint development at the Kangaroo and Echidna discoveries,” Karoon stated.

Karoon advised that it will complete acquisition of the block during December upon execution of a concession agreement in Brazil, at which time it will pay a total of $8 MM in a non-refundable bid bonus and provide a refundable work program guarantee bond to ANP of $2.5 MM, with the program consisting of seismic acquisition and geological studies.

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