Aussie independent Karoon Gas reports that its ongoing appraisal of its Kangaroo discovery offshore Brazil remains encouraging, with drilling of the latest sidetrack now complete.

The Kangaroo-2 down-dip sidetrack appraisal well reached a total depth of 2,745 m (9,006 ft), with evaluation work ongoing and preparations for an up-dip sidetrack now underway. Karoon says that Paleocene and Maastrichtian-aged reservoirs were intersected, hitting 38 degrees API oil.

The discovery is located in Block S-M-1165, with the original well confirming a 250 m gross (135 m net) oil column in Paleocene and Maastrichtian-aged reservoirs. A multi-formation production testing program was successfully completed in the Kangaroo-2 vertical well, as reported late last year (see DI, 10 December 2014, page 4).

Karoon operates the Santos Basin block with a 65% interest, with Pacific Rubiales Energy Corp holding the remainder.

Karoon has previously flagged up a leased FPSO as its likely development choice for Kangaroo.