KAROON Gas Australia has failed to find hydrocarbons at its Kangaroo West 1 exploration well, offshore Brazil, in the company’s most recent drilling campaign.
Discovery of oil at the well would have added value to the company’s Kangaroo 2 well, at which oil was found earlier this year.
In an announcement, Karoon said the well had intersected a “good thick sealing unit before penetrating a thick sequence of Paleocene to Campanian interbedded sands and shales.”
“The lack of hydrocarbons is attributed to a lack of oil migration charge into the structure, previously recognised as the main risk with this prospect,” the company said.
Karoon, which spent about US$34 million on the Kangaroo West 1 well, is currently completing a wireline study over the project area.
The company holds a 65 per cent operating stake in exploration block SM 1165, where the Kangaroo West 1 well was located, and four others in Brazil’s Santos basin.
Based on integration of the well results, the joint venture has elected to drill another exploration well, Echidna 1, about 20 kilometres away in SM 1102.
Karoon estimates that the Echidna 1 well has a 43% chance of success, adding that the reservoirs in the Echidna prospect were in shallower marine settings than the other Karoon wells.
In the meantime, work was progressing with the interpretation of new data from the Kangaroo 2 well and its two sidetracks.
“More data is still to be received from contractors including core and fluid sampling data,” the company said.
“In the coming months, the remapping with this new higher resolution 2 millisecond seismic data will also be integrated into the field model.”
The current exploration and drilling campaign is being conducted using the Olinda Star semi-submersible drilling rig for the entire campaign.