Karoon contracts Olinda Star semi-submersible drilling rig for Santos Basin appraisal drilling campaign

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"Olinda Star" semi-submersible drilling rig Image credit: www.karoongas.com.au

Karoon Gas Australia has executed final agreements with members of the QGOG Constellation S.A. Group to contract the “Olinda Star” semi-submersible drilling rig.

"Olinda Star" semi-submersible drilling rig Image credit: www.karoongas.com.au
“Olinda Star” semi-submersible drilling rig
Image credit: www.karoongas.com.au

Under the agreement, the Olinda Star will drill two firm wells and two optional wells in Karoon’s 65% owned and operated Santos Basin blocks S-M-1037, 1101, 1102, 1165 and 1166, with drilling scheduled to commence during the third quarter of 2016.

Karoon said the firm wells are planned for the appraisal drilling of the Echinda light oil discovery and will satisfy the company’s Santos Basin drilling commitments required under the revised Discovery Appraisal Plan, which was approved by the Brazilian government agency responsible for the regulation of the oil sector.

“The contracting of the drilling rig for the appraisal of the Echidna light oil discovery is an exciting next step for Karoon. It is a critical milestone for assessing the commerciality of the Echidna field, and on success, will provide important information for moving forward with an early production system, which could bring first oil in the first half of calendar year 2019,” said managing director Robert Hosking.

Adertisement

“Karoon’s team of specialist drilling engineers used the Olinda rig to complete the 2015 drilling campaign and the rig has subsequently undergone modifications at Karoon’s request, which are expected to further enhance the drilling performance. To date this team has successfully completed 6 vertical wells and 2 side-tracks in the Blocks.”

Karoon is an international oil and gas exploration company with projects in Australia, Brazil and Peru. The company’s wholly owned subsidiary, Karoon Petróleo & Gás Ltda, owns a 65% operating equity interest in the blocks, with Pacific Exploration and Production Corp. holding the remaining 35% equity interest.