Karoon Gas reports that a drill stem test of the Montara Formation reservoir over the interval 4714-4721 & 4727-4731mRT was in progress. After reviewing flow and pressure data, the Joint Venture has elected to finish the test effective immediately. We will now commence preparations to plug and abandon the well as previously advised upon the completion of well operations.

Karoon believes that it is highly likely that communication to the Montara reservoir was not established during perforation procedures. 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.

The Montara Formation reservoir sands were first penetrated in the Poseidon-2 well within the Poseidon field. Petrophysical and mudlog data provides strong indications that moveable gas exists in the reservoir which will be a serious target for further evaluation and eventual production testing in future appraisal wells to be drilled over the coming months.

Tags: Karoon Gas Australia Ltd