KAROON Gas Australia has executed agreements to contract out the Olinda Star semi-submersible drilling rig.

The agreements, signed with members of the QGCC Constellation, will enable the company to kick off an appraisal and exploration drilling campaign in the Santos basin, offshore Brazil.

The Olinda Star has been contracted to complete up to four wells in the company’s 65 per cent owned and operated Santos basin blocks, S‐M‐1037, 1101, 1102, 1165 and 1166.

The rig contract consists of two firm wells, the Kangaroo‐2 appraisal well and the Kangaroo West‐1 exploration well, and two option wells, allowing maximum flexibility for further appraisal of the Kangaroo discovery.

Karoon executive chairman Robert Hosking said the primary objective of the drilling campaign was the appraisal of the Kangaroo oil discovery.

“The Kangaroo‐2 appraisal well is designed to confirm the size of the oil column, reservoir continuity and properties, and f low rates for the Kangaroo oil discovery,” he said.

“This information will be crucial for assessing the commerciality of the Kangaroo field, and on success, will be the basis for the front end engineering and design phase.”

The drilling campaign is expected to commence during September 2014 with the Kangaroo‐2 appraisal well.

The initial two wells will satisfy Karoon’s 2014 Santos basin drilling commitments as outlined in the discovery appraisal plan.

Karoon said it would use its specialist team of drilling engineers who successfully completed the company’s initial three exploration well drilling campaign in the Santos basin, on time and under budget.

“The team is highly experienced and its members have in aggregate drilled over five hundred off‐shore wells globally in a variety of water depths, including ultradeep water.”