Tuesday, July 3

Karoon Gas Australia in pre open pending Browse Basin gas drilling announcement

Karoon Gas Australia (ASX: KAR) has been granted a trading halt by the ASX today pending the release of an announcement on its drilling operations in the Browse Basin.

The company had in April spudded the Boreas-1 well with operator ConocoPhillips (NYSE: COP) that targets the a large tilted fault block in WA-315-P that is part of the northeast trending structural high of the greater Poseidon structure.

Boreas-1, located about 4 kilometres south of the Poseidon-1 gas discovery, was designed to test the extent, presence and quality of reservoirs of the fault block and is part of a Karoon’s 2012 Browse Basin drilling program of up to 5 wells to better define the size and characteristics of the greater Poseidon structure.

The Poseidon field was discovered by the Poseidon-1 well in 2009 and has contingent resources of about 7 trillion cubic feet of gas in the Plover Formation sands.

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