Ann: Commitment to drill Neon control well(s), page-12

"Karoon signed agreements during September 2012 to farm-out a 35% interest to Pacific Exploration and Production Corp. (‘Pacific’, formerly, Pacific Rubiales Energy Corp. Following Pacific applying for insolvency protection during April 2016 during September 2016, Karoon acquired Pacific’s 35% interest in the Blocks for an upfront cash payment of US$15.5 million and a contingent US$5 million payable on the production of a minimum of 1 mmboe."

"Karoon has operated 2 drilling campaigns in the Blocks to date, drilling a total of 6 vertical wells, along with 2 side-tracks.
Exploration success resulted in the Kangaroo and Bilby light oil discoveries in 2013 which were followed by the Echidna light oil discovery in 2015. Both the Kangaroo and Echidna oil discoveries were flow tested during 2015 producing encouraging results."

"The Echidna and Kangaroo oil accumulations have also been renamed in accordance with local convention, and as each field straddles two blocks they had two corresponding names. Echidna was renamed to Neon and Neon Sul (Neon) and Kangaroo was renamed to Goiá and Goiá Sul (Goiá. During April 2019 the annexation was concluded and the fields are now referenced by Neon (Block SM-1037) and Goiá (Block SM-1101)."

Source: Projects - Karoon (karoonenergy.com.au)

From KAR's 7/5/2015 Announcement:

"Karoon Gas Australia Ltd is pleased to announce the production test results from the Company’s most recent discovery, the Echidna-1 exploration well in the Santos Basin, Brazil. The test produced a facility constrained stabilised flow rate of 4,650 bopd (over 2 hours) from the Paleocene reservoirs with a flowing well head pressure of 504 psig on a 1” choke. Oil samples recovered during the test measured 38.6 degree API oil gravity with a gas-oil-ratio of 701 scf/stb, with no measurable CO2 and H2S present, and no sand production.

Echidna-1 was drilled in Block S-M-1102 intersecting a 213 metre gross (104 metres net) oil column in Paleocene and Maastrichtian aged reservoirs"

"Test Results

DST-1 was conducted in the Paleocene sandstone reservoirs over the intervals 1,767 to 1,806 mRT and 1,813 to 1,843 mRT with an initial 24 hour main flow period. An average stabilized oil flow rate of 3,200 stb/d was achieved through a 44/64” choke with a flowing well head pressure of 733 psig and a gas-oil-ratio of 701 scf/stb.

After a 72 hour shut-in period the Echidna 1 well was flowed for 7.5 hours on increasing choke sizes with a final 2 hour, average stabilised flow rate of 4,650 bopd through a 1” choke with an average flowing well head pressure of 504 psig. Adjustments in testing facilities and procedures allowed a higher constrained flow rate to be achieved.

Physical oil samples recovered measured a 38.6 degree API oil gravity with a gas-oil-ratio of 701 scf/stb, with no measurable CO2 and H2S present, and no sand production.

Test results confirm that the quality of the Paleocene reservoir, previously interpreted from mud log and petrophysical data, is better than that observed anywhere else in Karoon’s Brazilian exploration acreage."

Source: Microsoft Word - Echidna-1 Progress Report No 4 07052015.docx (karoonenergy.com.au)

Regards

SP