Karoon says reinterpretation of previous 2D seismic has identified seven large leads in its oil and gas exploration permits WA-314-P and WA-315-P. Karoon is now commissioning 3D seismic and is in the process of farming out equity in the permits.

Karoon started out as an onshore coal-bed methane player, and it says its has had “enormously encouraging” results at its onshore Gippsland well, Megascolides-1. The data has provided “a sound basis for further exploration for CBM and oil” and Karoon will acquire more seismic to delineate optimal CBM and oil targets.

“The four lower risk leads each have potential recoverable reserves in the range 3.6 to 6.2 trillion cubic feet (TCF) of gas and potentially 70 to 260 million barrels of condensate in each lead,” Karoon said.

“The three higher risk leads are larger, averaging 17 trillion cubic feet of gas each with potential of approx 500 million barrels of condensate in each lead. The leads range in area from 80 to 300 square km.”

The reserves are based on mapping results and data from offset fields at Scott Reef and Brecknock and surrounding wells, according to Karoon.

“The permits are located less than 10km from the giant Scott Reef/ Brecknock gas and condensate fields complex, estimated by Woodside Petroleum to contain 21TCF of recoverable gas reserves with 210 million barrels of condensate,” the company said.

“Karoon’s mapping and geologic analysis demonstrates that the same play type and similar large structures occurs across Karoon’s WA-314-P and WA-315-P permits.”