Karoon farms in to Block Z38 off Peru

Karoon Gas Australia has signed a farm-in agreement with Vietnam American Exploration for exploration of a permit in northern Peru.

Jan 22nd, 2008

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Jan. 22 -- Karoon Gas Australia Ltd., Melbourne, has signed a farm-in agreement with Vietnam American Exploration Co. (Vamex) for exploration of a permit in northern Peru.

Karoon will earn an initial 20% of Block Z38 in the offshore Tumbes basin by funding a 2,000 line-km 2D seismic survey. The company then has the option of increasing its share to 60% by acquiring 670 sq km of 3D seismic data.

Karoon said tendering for a seismic vessel is well advanced, and the first survey should begin later this year.

The block is considered prospective for both oil and gas, Karoon said, and a discovery could be brought on stream rapidly because of the close proximity of existing facilities associated with Noble Energy's Amistad gas field.

Karoon said it also recently began an extensive seismic program on acreage in Australia's offshore Browse basin in conjunction with ConocoPhillips, and it has been awarded several blocks off Brazil.

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