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- Karoon Energy’s (KAR) Marina-1 exploration well has now been drilled to a depth of 3021 metres
- Unfortunately, logging has indicated the well bears no oil and only minor gas shows
- As a result, final logging is now being completed and Marina-1 will be plugged and abandoned
- Despite the outcome, the company said drilling provided valuable data on the geological setting of the Tumbes Basin
- Karoon Energy shares are down 4.91 per cent and trading for $1.07 cents each
Karoon Energy’s (KAR) Marina-1 exploration well has now been drilled to a depth of 3021 metres near the top of the Cardalitos Formation.
The Marina-1 well is located within the Block Z-38 Tumbes Basin in offshore Peru.
The Marina prospect has a gross prospective resource best estimate of 256 million barrels of oil (net to Karoon 102 million barrels) as announced in May 2018.
Mudlogging and logging-while-drilling results from the primary targets showed that Marina-1 encountered thin water-bearing sands with no oil and only minor gas shows. It’s for this reason that the well will be plugged and abandoned.
Despite the result, Marina-1 provided a large amount of valuable data on the geological setting for the Tumbes Basin region.
Several potential reservoir sequences were encountered but, unfortunately, these sections were water wet and would not add any significance at this location.
The well results will now be thoroughly analysed, but not further drilling is planned in Block Z-38.
Karoon owns a 40 per cent operating interest in Block Z-38 through its subsidiary, KEI (Peru Z-38) Sucursal del Peru. Tullow Oil holds a 35 per cent interest and Pitkin Petroleum owns 25 per cent.
The well progressed to plan, on time and within budget. The entire drilling operation is still expected to take another 30 days.
Karoon Energy shares are down 4.91 per cent and trading for $1.07 each at 12:21 pm AEDT.
