Karoon advises that LLOG, as Operator, has confirmed that the Who Dat East and Who Dat South Joint
Ventures have approved the drilling of the Who Dat East appraisal/exploration well and the Who Dat
South exploration well, located offshore in the US Gulf of Mexico. The total cost of the two wells is
expected to be US$67-77 million net to Karoon.
Who Dat East
Who Dat East lies approximately 27 kilometres east of the Who Dat Floating Production System (FPS).
The Who Dat East well, MC 509-1 (LLOG), is expected to spud in the first half of April 2024, using the
Noble Valiant drill ship. The aim of the well is to delineate a discovery made in 2001, and test additional
targets in the Middle Miocene section.
The well is designed to testfive main reservoir intervals and, subjectto the results, may be suspended
as a potential future producer. Who Dat East is estimated to contain 17 MMboe of gross unrisked 2C
Contingent Resources (5.4 MMboe net to Karoon on a Net Revenue Interest (NRI) basis, which is after
Government and other royalties) and 35 MMboe of gross unrisked 2U Prospective Resources (10.7
MMboe net to Karoon on a NRI basis), with an aggregate geological probability of success estimated
to be 62%1
.
The well will be drilled as a deviated hole with a total measured depth of approximately 7,925 metres
and will take approximately 56 days to drill and evaluate.
The Who Dat East JV participants are:
LLOG (operator) 40%
Karoon 40%
Westlawn 20%
Who Dat South
The Who Dat South prospect is located approximately 11 kilometres southwest of the Who Dat FPS.
The Who Dat South exploration well, MC 545-1 (LLOG), is expected to spud towards the end of the
second quarter of CY24, using the Seadrill West Neptune drill ship.
The objective of the well is to test two targets in the Miocene section, with the shallower target being
similarto the reservoir in the G-1 well in Who Dat. The Who Dat South prospect is estimated to contain
31 MMboe of gross unrisked 2U Prospective Resources (7.6 MMboe net to Karoon on a NRI basis), with
the geological probability of success estimated to be 52%1
.
The well will be drilled as a deviated hole with a total measured depth of approximately 7,425 metres.
It is expected to take approximately 50 days to drill and evaluate.
The Who Dat South JV participants are:
LLOG (operator) 40%
Karoon 30%
Westlawn 30%
2024 Capex Guidance
Following the Joint Ventures’ agreement to drill the Who Dat East and Who Dat South wells, Karoon’s
total committed capex for CY24 has increased by US$67-77 million,to US$117-134 million. The Who Dat
East exploration drilling costs include a 2 for 1 carry (capped at US$23 million).
Contingent capex of US$33-43 million relating to the Who Dat West exploration well (which includes
the remaining carry of US$16 million) is still subject to JV approval.
The total estimated cost of the three well Gulf of Mexico drilling program, of US$100-120 million, and
all other guidance provided on 29 February 2024 is unchanged2
.
