IN PARTNERSHIP WITH:

PROMOTING THE SUSTAINABLE USE OF

NATURAL RESOURCES Established company in the Brazilian oil industry

invests heavily in five Santos Basin wells Written by Flavia Brancato | Produced by Danilo Stefanelli

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PROMOTING THE SUSTAINABLE USE OF

NATURAL RESOURCES Established company in the Brazilian oil industry

invests heavily in five Santos Basin wells Written by Flavia Brancato | Produced by Danilo Stefanelli

U tilizing the most advanced technologies and conducting its operations responsibly under the highest environmental safety

and preservation standards, Karoon Oil and Gas is an independent oil and gas exploration company owned by Karoon Gas Australia Ltd.—an Australian company that plays an important role in the oil and gas exploration industry.

The group’s experience is internationally recognized. Karoon discovered the renowned Poseidon gas field in offshore Western Australia, and now has important projects in South America—more precisely in Peru and in the Brazilian coast, at the Santos Basin, where the company will explore and develop its oil resources.

Through a diverse portfolio of high-potential exploration blocks, Karoon’s activities’ backbone is the strategic partnerships with the leading companies in the oil and gas industry.

SANTOS BASIN - BRAZILProven to be one of the most important oil discoveries of the past 30 years, the Santos Basin is one of the regions where Petrobras and its partners made the biggest discoveries, including the Tupi and Carioca fields, followed by Jupiter, Guará e Iara, each estimated to contain several billions of barrels.

Karoon has 65 percent of equity in five blocks of exploration in the basin. They are located 160 miles off the coast of Santa Catarina state,

Echidna-1 well test

(May 2, 2015) / Photo:

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in shallow water, very similar to the Piracucá, Tiro, Sidon and Caravela oil fields, as well as the Merluza gas field. According to Tom Hosking, Karoon’s General Manager for South America, “We have finished the second phase of our campaign in the Santos Basin, which began on November 2014 and during which we drilled three wells. The first, Kangaroo-2, confirmed a 250 meter gross, 135 meter net, oil column, with testing showing a 39 degree API,” he explains.

The positive production test results of a second exploration well, Echidna-1, confirmed an excellent quality in this Paleocene reservoir, bringing more confidence. “The Echidna discovery and production test represents a significant milestone, moving Karoon a step closer to realizing the company’s ambitions of developing an integrated production hub in the

“Finding oil in the Santos Basin and drilling six wells is one of our biggest success stories”– Tom Hosking, Karoon’s General Manager for South America

Kangaroo-2 well test (January 1, 2015)

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http://www.qgogconstellation.com

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Santos Basin,” asserts Hosking.The president emphasizes the fact that well

productivity is a key driver of commerciality for any oil project, especially when it is considered much better than expected in that region. “Particularly in the current oil price environment, the result from the Echidna flow test is very encouraging. We are preparing to drill the first offshore well over 200 meters in water depth in 2016,” he says.

OTHER PROJECTSWithin the permits there is potential for a variety of actions either in the pre-salt and post-salt section. Applying the latest generation techniques, Karoon was the first company to run 3D wide azimuth seismic acquisition in Brazil. Besides the

Echidna-1 well test

(May 2, 2015) / Photo:

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Images

QGOG Constellation is a market leading provider of offshore and onshore oil and gas contract drilling and FPSO services in Brazil through its subsidiary Queiroz Galvão Óleo e Gás (QGOG). With continuous operations since 1981, QGOG has built an unmatched reputation for excellence in offshore and onshore drilling services, obtaining ISO 9001, ISO 14001 and OHSAS 18001 certification for its quality management, environmental and safety records and systems.

Website: www.qgogconstellation.com

QGOG CONSTELLATION

SUPPLIER PROFILE

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five blocks on the Brazilian coast, the company acquired and took over the operations of the offshore Tumbes and onshore Marañon basins, in Peru. “We believe our operations in South America may come to up to 50% of our business,” estimates Hosking.

Block Z-38 located in the Tumbes Basin is approximately five times the size of the combined five blocks operated in Santos Basin. The block lies in water depths ranging from 300 meters along its eastern boundary to over 2500 meters in the west and it is located on the Peruvian coast, bordering Ecuador in its northern side.

Karoon’s Block 144, of approximately 6,838 km2, is located on the eastern side of the Andes

Karoon’s shorebase –

tubes for the drilling

campaign (May 2015)

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Amago Images

Olinda Star – detail of the rescue boat and helicopter landing area

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Olinda Star drilling rig (May 2015)

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mountain range within the onshore Marañon Basin. The Marañón Basin is the largest Peruvian sedimentary basin. It forms part of a much greater sub-Andean basin system that extends into the prolific Oriente Basin in Ecuador and the Putumayo Basin in Colombia.

ENVIROMENTAL COMMITMENT Karoon is committed to preserving the environment and the ecosystem of the regions where it operates. In order to fulfill its commitment to being an environmentally responsible company, Karoon meets the highest environmental standards and best practices in all of its operations.

The company understands that each country has its own requirements and procedures so as to

“We believe our operations in South America may come to up to 50% of our business.”– Tom Hosking, Karoon’s General Manager for South America

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Olinda Star control room

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“The Echidna discovery and production test represent a significant milestone, moving Karoon a step closer to realizing the company’s ambitions of developing an integrated production hub in the Santos Basin”– Tom Hosking, Karoon’s General Manager for South America

Echidna-1 well test (May 2, 2015)

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acquire its permits according to all the countries’ legislation. In a responsible way, it employs the latest technology as well as the highest standards to achieve safety and environmental conservation.

Additionally, Karoon is greatly involvement with community work. In some regions, Karoon’s staff develops relationships with the local population to learn about their most immediate needs, helping to improve the quality of life of these residents. With that in mind, a series of programs have been put into effect. Even though performing charity was not the main objective, the projects had an important and positive impact in the northern coast fishing and Peruvian Amazon mestizo communities.

Karoon has positive expectations for the future and has been working with governments to achieve sustainable development through the creation of strategic alliances which can be applied to different sectors including the economy, environment and community projects.

The upcoming years’ wishes are very simple. “Get early production in our five operated blocks and increase our footprint in Brazil as a reputable operator,” concludes Hosking.

Still in the general manager’s words, “Finding oil in the Santos Basin and drilling six wells is one of our biggest success stories. The oil industry in Brazil is advanced, with interesting ongoing projects, future opportunities through government bids and proven basins,” he finishes.

Company Information

N A M E

Karoon Oil and Gas

I N D U S T RY

Oil and Gas

H E A D Q U A RT E R S

Rio de Janeiro / RJ

Brazil

E S TA B L I S H E D

2008 in Brazil

P R O D U C T S /

S E R V I C E S

Production and

exploration of Oil

and Gas

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Karoon Petróleo e Gas Ltda. Av. Afranio de Melo Franco, 290 – 4º andar

Tel. +55 (21) 2227-8600

www.karoon.com.br