KAROON Gas has reported strong results from production testing of the Kangaroo-2 well offshore Brazil.

A vertical production well on the project could produce between 6,000 and 8,000 stock tank barrels per day from the combined reservoirs, Karoon’s managing director Robert Hosking said.

Mr Hosking said horizontal production wells could be expected to produce at higher rates.

Operated by Karoon, the Kangaroo-2 appraisal well is located in exploration block S-M-1165 and had a 250 metre gross oil column in Paleocene and Maastrichtian reservoirs confirmed by the company in November 2014.

The company reported the maximum flow rate at production test DST-2A conducted in the Paleocene A, B and C sandstone reservoirs was 3,700 barrels per day through an 88/64 inch choke.

Production test DST-2 conducted in the Paleocene C sandstone reservoir reported a maximum flow rate of 2,500 barrels per day through a 44/64 inch choke.

The well was shut in for a 48 hour pressure build up at the end of the 24 hour flow period.

Down-dip side-track drilling results confirmed five reservoir fluid samples recovered by wireline from a 50 metre gross oil column in the Maastrichtian section with a net to gross of 36% and an average porosity of 24%.

The down-dip side-track penetrated the Paleocene formations on the eastern side of the fault with water wet reservoir sands being encountered as expected.

In a statement, Karoon said side-track 1 was drilled to a down-dip location to target the Paleocene and Maastrichtian reservoirs on the eastern side of an interpreted north-south trending fault and to evaluate potential hydrocarbon accumulations in the Campanian.

No hydrocarbons were encountered in the deeper Campanian interval.

Karoon said side-track 1 was complete and the company is preparing to start side-track 2 which will be drilled into Paleocene and Maastrichtian reservoirs in an up-dip location to test reservoir and hydrocarbon potential towards the salt wall.

The rig will be moved to drill the Kangaroo West-1 exploration well once operations at Kangaroo-2 have been completed.

‘Olinda Star’ a semi-submersible rig is drilling the entire campaign.

The exploration and appraisal drilling campaign is expected to continue through the first half of 2015.

Karoon holds a 65% interest in block S-M-1165 and Pacific Rubiales Energy Corporation holds the remaining 35% interest in the block located in the Santos basin in offshore Brazil.