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The Kangaroo 2 appraisal well. Image courtesy Karoon Gas Australia.

Karoon Gas Australia confirmed an oil pay zone Wednesday at its Kangaroo-2 appraisal well in Brazil’s offshore Santos Basin.

The well, located in Block S-M-1165, encountered a 820 foot gross oil column in Paleocene and Maastrichtian aged reservoirs, Australia-based Karoon said.

Production testing over the Paleocene A, B and C oil bearing reservoirs has been completed and preparations are underway to start a side-track program to better define the resource size and recovery factors.

The first production test saw maximum oil flow rate of 3,700 stb/d through an 88/64” choke with a gas-oil-ratio of 540 scf/stb.

A second production test produced a maximum oil flow rate of 2,500 stb/d through a 44/64” with a gas-oil-ratio of 450 scf/stb.

The first production test produced 33° API oil with zero CO2, H2S, water or sand produced and the second test produced a 31° API oil with zero CO2, H2S, water or sand produced

Based on the test results Karoon estimates a vertical production well at the site could produce 6,000 to 8,000 stb/d from the combined reservoirs.

The company added that a horizontal production well could be expected to produce at higher rates.

The Kangaroo-2 well will now be side-tracked in both a down-dip and up-dip location.

Karoon holds a 65 percent operating stake in Block S-M-1165.

Ontario-based Pacific Rubiales Energy holds the remaining 35 percent interest.