Location:
Offshore, Tumbes Basin Peru (shallow water) close to the oil and natural gas fields Albacora (7 MMBO probable reserves) , Corvina (709 BCF probable reserves), and Piedra Redonda (96 BCF Probable reserves) discovered in the 1970's and 1980's. Karoon's acreage lies close to the markets and infrastructure of the border city of Tumbes near Equador.
Consistent GDP growth in Peru has led to consistent energy demand growth. Attractive commercial terms have been introduced by the Government to encourage investment and exploration to stem Peru's falling domestic oil production . Peru is also one of the most open countries to private investment in South America. In addition, Peru and Equador's demand for electricity provides an economically attractive market for gas.
Geology:
A number of simple tilted fault blocks (eg. Delfin), and four way dip closures (eg. Corvina) are developed in tertiary sequences in the Tumbes Basin. The Piedra Redonda field in the southern Tumbes Basin produces from the Oligocene Mancora Formation and has the same pro delta source rock that has been the source for oils in the Talara Basin to the south. The reservoir target intervals lie from the Tumbes Fm through to the Zorritos Fm.
Interest:
Karoon earning up to 60% equity by funding 2D and 3D seismic programs.
Potential:
2 main leads with 100 to 200mmbl oil or multi Tcf gas prospective resources potential. Additional leads potential recognised but have yet to be defined.
JV and work program: