AUSTRALIAN oil and gas explorer Karoon Gas announced completion of its side-track program of the company’s Kangaroo 2 appraisal well, located in offshore Brazil.

The company reported 39 degree API oil was recovered from Paleocene aged reservoir.

Penetrating oil bearing sands in the Paleocene reservoir section, the company recovered five fluid samples by wireline from a 37 metre gross oil column with a net to gross of 60 per cent and an average porosity of 27%.

Pressure data indicated the Paleocene oil bearing reservoir is in a separate pressure compartment from those seen in Kangaroo 2.

Karoon said the remaining sample will be analysed in onshore laboratories.

The company reported the Maastrichtian reservoir was water bearing where a second fault separates the up-dip Maastrichtian from the oil accumulations in the vertical and down-dip side-track wells.

No gas cap was penetrated in any reservoir, indicating no oil has been displaced by gas in the Kangaroo reservoirs.

Karoon managing director Robert Hosking said the data showed a number of separate accumulations made up the field, with the project having found no significant gas cap as originally prognosed.

“The production testing results are very encouraging, highlighting commercial flow rates are achievable from the Kangaroo oil field and play type,” he said.

In a statement, Karoon said the Olinda Star rig will now move to, and commence drilling at the Kangaroo West 1 exploration well to evaluate the salt flank prospect.

Due to its large size and proximity to Kangaroo, a successful outcome at Kangaroo West 1 could materially add to any possible development of the Kangaroo oilfield, the company said.

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