Karoon shares slump on well results
Last night Karoon Gas Australia Limited (KAR) confirmed gas in its Poseidon-2 well at the Plover-B Formation. However, the company said that, along with joint venture partner ConocoPhillips, it has elected to finish a drill stem test of the Montara Formation reservoir immediately after reviewing flow and pressure data.
The company said gas at Plover-B was produced to surface at a maximum rate of 850 standard cubic feet per day on a 1”choke.
Karoon said it interprets that higher flow rates are achievable based on the low permeability measured in the B sand core.
“Karoon’s interpretation of the restricted flow resulted in part from completion brine being present in the well, severely restricting gas flow to surface,” the company said.
”Liquids volumes were not measured due to the low gas rates.”
Karoon said preliminary compositional analysis shows high methane content, some associated heavier hydrocarbons and low CO2 levels.
Meanwhile, the company said it would now commence preparations to plug and abandon the well at the Montara Formation as previously advised upon the completion of well operations.
”Lack of suitable equipment at the well site directed at attempting to establish communication to the Montara reservoir has resulted in the decision to move to commence drilling in a new location," Karoon said.
As at 1008 AEDT, Karoon shares had slumped $1.86 to $4.80.
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