ann out

surpirsed there has been no comment yet

any ideas what this is worth, potentially at least another 60c if productive.

"Gippsland Update
Karoon is pleased to advise that the drilling contract with Century Drilling has been signed for
the three well program in the western on-shore Gippsland Basin. Commencing in the middle
of November 2006. Karoon Gas 100% equity in the Exploration Licenses PEP 162 and EL
4537 exploration licences.
Rig mobilisation and site preparation has begun for the first of three wells with the
Government approvals process progressing to plan.
Interpretation of the recent 250km 2D Seismic survey data has showed positive results with
three prospects now worked up for drilling. Each prospect has a potential reserves capacity of
around 3 million barrels of oil.
The entire program comprising the recently acquired 2D seismic and now the drilling program
follow up on the very encouraging oil shows seen in the 2004 Megascolides-1 well.
Initial economic screening has indicated that due to the close proximity of infrastructure, there
is a minimum economic reserves threshold of 500,000 barrels."