- Successful control well drilling campaign reduces subsurface uncertainty and helps narrow Neon Contingent Resource estimates:
- 1C Resources increased by 26% to 37.7 MMbbl.
- 2C Resources increased by 9% to 60.1 MMbbl.
- 3C Resources reduced by 3% to 89.5 MMbbl.
- Decision on entry to Concept Select project phase targeted for end 1QCY24.
- Mid Case (2U) unrisked Prospective Resources for the Neon West prospect, located two kilometres west of Neon, assessed at 14.8 MMbbl.
Karoon has updated its Contingent Resource estimates for the Neon field (100% owned by Karoon) as at 30 June 2023. This follows integration of the results available to date from the Neon-1 (9-NEO-1-SPS) and Neon-2 (9-NEO-2D-SPS) control wells drilled earlier this year.
The Contingent Resource update reflects the successful control well drilling campaign, which has resulted in improved definition of the oil resource potential at the Neon field. The revised resource estimates, which have been reviewed and are supported by RISC, a leading independent energy advisory firm, are as shown in the table below:
The improved Contingent Resource definition for the Neon field will facilitate the technical and commercial feasibility studies for a potential Neon development that are currently underway. This analysis will be refined over the coming months as the dataset is augmented by results of ongoing laboratory and seismic reprocessing study programs. Updates to subsurface geotechnical evaluations will be incorporated into the engineering and commercial study workstreams as they become available. Therefore, further updates to the resource assessment are anticipated at the appropriate project milestones.
If the results of these ongoing studies remain encouraging, entry to the Neon Concept Select project phase is targeted for the end of the first quarter of CY2024, subject to strategic capital allocation, and prevailing supply chain and oil market conditions.
In addition, undiscovered, unrisked Prospective Resources for Neon West, a prospect located approximately two kilometres west of Neon within Karoon’s 100% owned S-M-1037 permit, have been assessed and booked. Neon West Prospective Resources, which have also been reviewed and are supported by RISC, are shown in the table below:
Dr Julian Fowles, Karoon’s CEO and Managing Director, said:
'The improved level of confidence in the volume of oil at the Neon Field is a good step forward and positively impacts the robustness and materiality of the potential Neon development opportunity. We have now commenced integrating the revised Contingent Resource estimates into the latest Neon facilities engineering and feasibility studies. The Neon West prospective resource assessment provides further encouragement for the ultimate potential of the area.
In line with Karoon’s gated project maturation process, if these studies, which will include a preliminary assessment of potential value, financing feasibility and associated risks, are positive, we aim to enter Concept Select late in the first quarter of CY2024. The Concept Select phase would comprise a more detailed assessment of the strategic, technical and commercial aspects of a potential development, required to make a decision whether to enter into the Define phase, which would include Front End Engineering and Design (FEED).'
Karoon will provide an update on its Reserve and Resource position as at 30 June 2023, including the results of ongoing work on the Reserves at Baúna (BM-S-40), in the Full Year Results scheduled to be released on 23 August 2023.
Source: Karoon Energy
