By Ross Kelly
SYDNEY--Karoon Gas Australia Ltd. (KAR.AU) expects to update its
resource estimate for its South American assets in the near future,
and said it will re-open a data room for parties interested in its
exploration blocks in Peru by early next year.
Thursday, the company also provided an update of its Boreas-1
exploration well being drilled offshore Western Australia state
with ConocoPhillips (COP). Karoon said 108 meters of core has been
taken from the well and that it will perform further tests to
identify the presence of hydrocarbons and possibly gas flow rates.
Early testing has already indicated the possible presence of
hydrocarbons, it said.
"The joint venture wants to test it and try to flare it," said
Investor Relations Manager James Wooten.
The Boreas-1 well is the first in a drilling campaign covering
5-8 wells, designed to appraise the Poseidon natural gas discovery
in 2009. An updated resource estimate for the Browse Basin joint
venture with Conoco isn't likely until after the third well is
drilled, he said.
Melbourne-based Karoon announced this week it had sold down a
35% stake in its Brazilian exploration blocks to Colombia's Pacific
Rubiales Energy Corp. (PRE.T) for up to US$250 million.
A data room for its assets in Peru will be opened either late
this year or early 2013, Mr. Wooten said.
Citigroup analyst Mark Greenwood said in a client note that he
expects a revised prospective resource estimate for Karoon's South
American assets shortly. "We understand the acquisition of further
3D seismic has resulted in a likely doubling in unrisked
prospective resource between Brazil and Peru," Mr. Greenwood
said.
Mr. Wooten said a resource upgrade could be expected in the near
future and will entail the inclusion of 12 new exploration
prospects in Peru and new 3D seismic data shot there.
Karoon executives are about to embark on a new international
roadshow, but Mr. Wooten said it was predicated around updating
investors of the company's progress and isn't to do with raising
capital.
"The farmdown deal should fund Karoon's share of exploration
costs, removing concern over a possible near-term equity raising,"
Citigroup's Mr. Greenwood said of the deal with Pacific
Rubiales.
-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692;
Ross.Kelly@dowjones.com
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