Location:

Offshore Browse Basin, North Western Australia. The exploration permits are administrated in a politically stable environment. With exploration success and development this equates to low commercial and sovereign risk, critical factors in large development projects.

 

Geology:

 

The three acreage areas are immediately on trend with the giant Scott Reef (Torosa)/Brecknock gas fields, discovered in the 1970s, which are currently being appraised and developed by Woodside Petroleum et. al.. The Torosa development has a proven P50 resource of 21 TCF gas and 300mmbl of condensate.

The other large proven gas field to the east of Karoon's area is the Inpex Browse Ltd and Total E&P Australia Icthys gas and condensate field. This field is estimated to contain 9.5 TCF of gas and 312 mmbl of condensate which will source a liquefied natural gas (LNG), liquefied petroleum gas (LPG) and condensate project.

The Jurassic Plover Formation play type mapped in Karoon's permits is the same identified in the Scott Reef/Brecknock area with a number of large structures having been identified immediately to the north and east of Scott Reef.

 

Interest:

 

Karoon Gas has a 49% interest in WA-314-P and WA-315-P, and a 40% interest in the adjacent WA-398-P.

 

Karoon Gas Browse Basin Acreage 

Potential:

 

Seven large high-relief prospects have been mapped. Exploration success could lead to an Australian LNG project that would be well placed to meet Asian demand for security, speed and reliability of supply.

 

JV and work program:

 

Exploration Permit WA-398-P was acquired during the 2006/2007 financial year following a joint bid made with Karoon's joint venture partner in the Browse, ConocoPhillips. This permit is situated directly south of the WA-315-P permit.

The Poseidon prospect previously identified by Karoon straddles both of these permits and the acquisition of the new permit is therefore considered by Karoon to be especially important to the future exploration of the area.

A 3D seismic acquisition program of approximately 1400 sq kms in WA-398-P (1900 sq kms overall) is due to commence first quarter 2008.

The Sedco-703 drilling rig has been contracted for 200-225 days to complete the much anticipated Browse Basin drilling program. This drilling program is scheduled to commence during the third quarter 2008 and will include wells in WA-314-P, WA-315-P and WA-398-P.