Karoon encounters oil at Santos basin discovery

A combine led by Karoon Gas Australia Ltd. has made an oil discovery at the Bilby-1 exploratory well in the Santos basin offshore Brazil.

The Bilby-1 well, on Block S-M-1166 went to 3,854 m measured depth and found oil contained in an interbedded sand and shale interval of Late Cretaceous age, confirmed from sampling over a 200-m gross section so far. The discovery has been verified by wireline petrophysical, pressure data, fluid sampling, and mudlog analysis.

The well is positioned 150 m downdip from the trap crest as interpreted on seismic. After wireline testing is complete, the well is to drill ahead to the planned total depth of 4,573 m measured depth.

The well was drilled as part of an agreement dated Sept. 18, 2012, as a minimum work commitment for five offshore blocks, S-M-1101, S-M-1102, S-M-1037, S-M-1165, and S-M-1166. Pacific Rubiales Energy Corp., Toronto, has a 35% interest in the blocks subject to approval by Brazil’s ANP.

Two other exploratory wells have been drilled on the blocks as part of the agreement. Kangaroo-1 was previously announced as an Eocene light oil discovery, and Emu-1 was plugged and abandoned after failing to discover hydrocarbons in economic quantities.

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