Karoon Gas announces that all seismic data has now been processed and seismic interpretation is well underway for its Browse Basin permits WA-314-P and WA-315-P. Results to date are encouraging, supporting the previous 2D interpretation of the potential resources in the permits.

On a risked basis, Karoon believes that the 2D seismic interpretation indicates the potential for over 20tcf of gas and associated liquids. The interpretation process is expected to take a few more months to complete with final drill site selection in the last half of this year.

In parallel with seismic and geologic interpretation work, Karoon is also separately performing engineering work to assist where it can, in the definition of the potential resource characteristics and development options. Karoon has also separately commissioned the Worley Parsons Group to carry out a conceptual review of the development options, and sales products based on gas samples from the Buffon-1 well.

The gas analysis in the Worley Parsons review predicts a potential condensate yield of 33 barrels (bbls) per million cubic feet and a LPG (Liquefied Petroleum Gas) yield of 6.4 metric tonnes per million cubic feet, approximately doubling the total liquid content of previous estimates. LPG sells in the market at approximately 80% of the crude oil price.

A discovery of 1 tcf could possibly yield approximately 100 million barrels of condensate and LPG. Any discovery that confirms this composition will have a major positive impact on the value of development revenue streams with total revenue contribution from LNG and liquids being approximately equal.

Prior to exploration drilling Karoon and ConocoPhillips will have an integrated interpretation incorporating all geological, geophysical and engineering data to select the best locations for drilling. The market will be informed immediately a drilling contract is secured.