Karoon Gas Australia Ltd., Melbourne, has been awarded a large exploration permit offshore South Australia in the Ceduna subbasin of the Great Australian Bight to the southeast of the controversial deepwater permits held by BP PLC, Statoil AS, Murphy Oil Corp., Santos Ltd., and Chevron Corp.
Karoon’s block, covering just under 18,000 sq km, is EPP 46 and lies about 200 km west of Port Lincoln.
The company says the Ceduna subbasin hosts a large Cretaceous-age delta system that it believes holds hydrocarbon potential on a world scale.
The combined exploration commitments of the major companies total $1 billion (Aus.) and include the drilling of 9 wells over the next 2 years. Karoon is quick to say, however, that its initial 3-year commitment does not include a well, but does require the acquisition of 2D and 3D seismic data.