Karoon Gas Australia Ltd ABN 53 107 001 338 Po Box 469 Mt Martha...

Karoon Gas Australia Ltd ABN 53 107 001 338 Po Box 469 Mt Martha Victoria 3934
Phone +613 59741044 Fax: +613 59741644
Website: www.karoongas.com.au




Thursday, 28th January 2010

(ASX Code: KAR)

ASX ANNOUNCEMENT

POSEIDON-2 PROGRESS REPORT NO 18

At 0600 hrs today, Karoon advises that production testing of the Plover reservoir was in progress. The well
was perforated and communication to the reservoir has been established.

Results will be released as soon as they are available.

The Transocean Legend semi-submersible rig is drilling the exploration well, which is operated by
ConocoPhillips.

Poseidon-2 is located in WA-398, on the southern flank of the north-east trending structural high of the
greater Poseidon structure. The objective of the well is to test the extent, presence and quality of reservoirs
down-dip from Poseidon-1 where the Plover Formation is interpreted to thicken. The well was drilled to a
total depth of 5356 mRT.

As with the recent gas discovery well, Poseidon-1, Poseidon-2 is planned to be plugged and abandoned
following final well evaluation and production testing. These are exploration wells and are not suitable for
production purposes.

Equity interests of the participants in WA-398-P are:

Karoon Gas (Browse Basin) Pty Ltd 40%
ConocoPhillips (Browse Basin) Pty Ltd 60%

Poseidon-2 Location:

Latitude: 13 deg 40 07.13 S Northing: 8 488 802 mN
Longitude: 122 deg 16 32.25 E Easting: 421 662 mE


For further information please see the Karoon website or contact:

Scott Hosking: Company Secretary Ian Howarth: Collins Street Media
Telephone: 03 59741044 Telephone: 0407 822 319
Fax: 03 59741644 Email: [email protected]
Email: [email protected]
Website: www.karoongas.com.au