Source: Karoon Energy
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  • Farmout between Karoon Energy Ltd and Tullow Peru Limited Sucursal del Perú is now complete.
  • Karron now have 40 per cent equity interest in Block Z-38 in the Tumbes Basin, Peru. Tullow have a 35 per cent equity interest.
  • Karoon’s new drilling project, the Marina prospect is set to begin early 2020.

Karoon Energy Ltd. has announced the completion of the farm-out to Tullow Peru Limited Sucursal del Perú, which was announced on 10 January 2018.

The farm-out saw Tullow acquire 35 per cent interest in an offshore exploration block along the Tumbes Basin, Peru. Karoon is an international oil and gas exploration company, which has projects in Australia, Brazil, and Peru.

The farmout terms will see Tullow fund 43.75 per cent of the first exploration costs, capped at US$27.5 million. Alongside their 35 per cent share of the total well costs.

Additionally Tullow will pay US$2 million and a share of the block costs from 9 January 2018 until completion. A further US$7 million is to be paid upon commercial discovery and submission of a development to the Peruvian local government Perupetro.

Following the successful farmout, Karoon has a 40 per cent equity interest in Block Z-38 in the Tumbes Basin. Alongside Tullows’ 35 per cent and Pitkin Petroleum Peru’s 25 per cent.

Karoon’s Managing Director, Mr. Robert Hosking said the farm-out brings “high impact exploration back” to Karoon’s portfolio. Drilling in the Marina prospect is expected to commence early 2020, as planning advances, according to Karoon.

The best unrisked estimate of prospective resource size to be delivered from the Marina prospect is 256 mmbbls, said Mr Hosking. 102 mmbbls will net to Karoon.

It is expected a follow-on opportunity in the block will lead to “over a billion barrels of prospective resource on a gross basis,” said Mr. Hosking.

Additionally, a Technical Evaluation Agreement for Area 73 in the Tumbes Basin, secured by Karoon in December 2018, is expected to “contain significant incremental follow-on opportunities.”

Please see the ASX announcement for further details

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