6 Aug 2009drilling progress report● Neutral
Kontiki-1 is drilling ahead at 2,496 mRT toward a planned 4,610 mRT, targeting Middle and Upper Jurassic sandstones. Poseidon-2 follows on the same rig. No geological result yet.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
30 July 2009drilling progress report● Neutral
Kontiki-1 is drilling ahead at 1,932 mRT in 17-1/2 inch hole, towards a planned 4,610 mRT. No geological result yet.
23 July 2009drilling spud● NeutralMajor
Kontiki-1 was spudded on 22 July in WA-314-P, the second well of the Browse program, with a planned depth of 4,610 mRT. It targets Jurassic sandstones in a structure separate from Poseidon and will be plugged and abandoned after evaluation.
26 May 2009drilling progress report● Neutral
Poseidon-1 abandonment is nearly complete. The Sedco-703 rig's survey expires 28 May, so its contract is suspended. A replacement rig for Kontiki-1 is being negotiated, with no material delay expected, and a multi-well Poseidon appraisal plus 3D seismic is planned.
19 May 2009drilling result▲ GoodMajor
Poseidon-1 will be plugged and abandoned as a significant gas discovery: 317m gross gas-bearing Plover, three sands totalling 228m. Flow tests were impossible after a mechanical failure plugged the well. Karoon says the contingent resource is likely consistent with or above its pre-drill P50 7 tcf.
13 May 2009drilling progress report▼ Bad
Attempts to recover the stuck logging tool failed, so the two gas samples are lost. The tool was pushed to the hole bottom below the test zones and should not affect testing. A 5 inch liner is being run for about three weeks of flow tests.
4 May 2009drilling progress report▲ GoodMajor
Wireline pressure data over a 56m interval confirmed a gas column in the lower sand, now measured at 139m gross. A logging tool then became stuck and two gas samples were not recovered. A gas flow test is planned after fishing the tool.
29 Apr 2009drilling progress report● Neutral
Poseidon-1 reached total depth of 5,112m and is preparing wireline logs. The hydrocarbon intersections remain interpreted until logging is analysed. No new result.
27 Apr 2009drilling progress report▲ GoodMajor
Three thick sands, of 10m, 67m and 114m+, have been found in a 278m Plover interval and are interpreted to contain hydrocarbons, based on mud logs and logging-while-drilling data. Wireline logging is needed to confirm. This is the most encouraging Poseidon-1 news so far.
23 Apr 2009drilling progress report▲ Good
Poseidon-1 entered the Middle Jurassic Plover reservoir at 4,796m and found a 10m sand interpreted to contain hydrocarbons. The significance will be assessed after drilling and logging. It is an early positive sign, not a confirmed discovery.
21 Apr 2009drilling progress report▲ Good
Poseidon-1 passed the top of the Upper Jurassic at 4,619m, about 31m higher than predicted, and background gas rose to 2.3% in non-reservoir rock. Main reservoir sands are expected within 24-48 hours.
15 Apr 2009drilling progress report● Neutral
At 4,580m, new logging data moved the expected top of the reservoir target to about 4,650m RT, and planned total depth was extended to about 5,050m TVDSS. Karoon says there is no material net impact on prospective resource ranges.
8 Apr 2009drilling progress report● Neutral
Poseidon-1 is drilling ahead in 8-1/2 inch hole at 4,190m, getting closer to the reservoir target expected from about 4,400m TVDSS. No result yet.
1 Apr 2009drilling progress report● Neutral
The expandable liner was set at 3,957m after clearing a wellbore obstruction at 3,901m. Poseidon-1 remains at 3,965m, preparing to drill ahead.
25 Mar 2009drilling progress report● Neutral
Poseidon-1 is at 3,965m, running an expandable liner before drilling resumes. Progress is slow, with no new geological result.
18 Mar 2009drilling progress report● Neutral
Poseidon-1 set 9-5/8 inch casing at 3,890m and is drilling ahead at 3,938m. Reservoir target still expected from about 4,400m TVDSS.
11 Mar 2009drilling progress report▼ Bad
At 3,898m Poseidon-1 hit a zone of drilling fluid losses and gains, and the operator decided to run 9-5/8 inch casing. The well is still short of the target reservoir.
4 Mar 2009drilling progress report● Neutral
Poseidon-1 is drilling ahead at 3,800m after the fluid influx at 3,552m. The reservoir target is still expected from about 4,400m TVDSS. No new result.
25 Feb 2009drilling progress report▼ Bad
Poseidon-1 reached 3,552m, where a minor fluid influx occurred. The crew is circulating mud to stabilise the hole before changing the drill bit. The reservoir top is expected at about 4,400m TVDSS.
18 Feb 2009drilling progress report● Neutral
Poseidon-1 resumed drilling and was at 3,026m, drilling ahead in 12-1/4 inch hole toward the 4,800m planned depth. No hydrocarbon result yet.
11 Feb 2009drilling progress report▼ Bad
Poseidon-1 is still at 2,288m. Blow-out equipment needed repairs, and cyclone Freddy forced a partial evacuation of staff and equipment; re-manning was completed over the weekend. Drilling had not resumed yet.
4 Feb 2009drilling progress report● Neutral
Poseidon-1 has set surface casing at 2,288m and is preparing to test blow-out prevention equipment before drilling ahead. No result yet; Karoon holds 49% of the well operated by ConocoPhillips.
28 Jan 2009drilling spud▲ GoodMajor
Poseidon-1 spudded on 26 January 2009 in WA-315-P, the first well of the Browse campaign. It was drilling ahead at 1,055m toward a planned 4,800m. This resolves the long-delayed start of drilling. Karoon holds 49%.
23 Jan 2009drilling scheduled▲ Good
Sedco-703 rig handed over on 22 January 2009. Poseidon-1 in WA-315-P is due to spud the following week, with a planned depth of 4,800m, targeting Jurassic sandstones. Karoon holds 49% (ConocoPhillips option to 60%), starting the 200-day Browse campaign after several slips.
15 Sept 2008resource reserve update▲ GoodMajor
DeGolyer and McNaughton, an independent consultant, report mean risked prospective resources of 1.23 billion barrels of oil equivalent across Karoon's 19 prospects in Australia and South America. These are undiscovered, with no certainty any will be found. Browse drilling is expected from Q4 2008 or Q1 2009.
7 July 2008drilling scheduled▼ BadMajor
The Sedco 703 rig is now expected to start Browse drilling in late Q4 2008, running to mid Q1 2009, a slip from the earlier Q3 2008. Three wells satisfy permit commitments; Karoon funds 20% of the two WA-314/315-P wells and 40% of the WA-398-P well.
27 Mar 2008drilling progress report● Neutral
The Endurance 3D seismic survey in WA-398-P (at least 1400 sq km, plus about 500 sq km outside the permit) is complete. Data is being processed, with interpretation expected later in 2008 to sharpen leads ahead of drilling. Resolves the January survey start.
22 Jan 2008farm in farm out agreement▲ GoodMajor
Karoon signed a farm-in with Vamex (Pitkin Petroleum subsidiary) for Block Z38, offshore Tumbes Basin, Peru. It earns 20% by funding a 2,000 km 2D seismic survey, with an option for a further 40% via 670 sq km of 3D. Subject to regulatory approvals; its second new country after Brazil.
11 Jan 2008drilling progress report● Neutral
Acquisition of the Endurance 3D seismic survey began in WA-398-P, covering 1400 sq km in the permit and about 500 sq km outside it, and is expected to finish in Q1 2008. It will refine leads ahead of drilling.
21 Feb 2007drilling result▼ BadMajor
Karoon cancelled the third Gippsland well, Raniformis-1, because the Rintouls Creek Sandstone had very low permeability and an uncertain distribution. It also said Browse seismic supported over 20 tcf of risked potential, and that a 10 tcf discovery might yield about 100 million barrels of condensate and LPG.