Karoon Acquires Interest in Carnarvon Basin Gas Block

Karoon Gas has acquired a 100% interest in WA-482-P in the North Carnarvon Basin from Liberty Petroleum Corporation. Karoon will manage the permits and be solely responsible for the programmes, budgets and expenditure on the permits. 

The company said that it has conducted a significant amount of due diligence over the acreage before its recent award to Liberty. Karoon's mapping and assessment indicate the potential for multi-trillion cubic foot (tcf) targets. To date 4 main prospects have been identified with preliminary estimates of prospective resources in each in the 0.5 to 3tcf range.

Karoon is required to fund 100% of the first two years of mandatory work commitments on the Permit which is expected to be at least A$16,500,000.  Following completion of the first two years of work commitments, it will then assess whether or not to withdraw, or take on the well commitment in year 3 and seek to farm out an interest.