Karoon Energy Achieves First Production at Patola Field in Brazil

Key Highlights:

1. Karoon Energy announces that the PAT-2 well in the Patola field has come onstream at a rate of 12,000 – 14,000 bopd, with production from the second well expected to commence by the end of March 2023.

2. The field is expected to stabilize at a total production of approximately 10,000 to 15,000 bopd, taking total production from BM-S-40 to more than 30,000 bopd.

3. Karoon CEO and Managing Director, Dr Julian Fowles, highlights that this is Karoon's first new field development in Brazil and has been delivered with no material safety or environmental issues to date.

Karoon Energy has announced that the PAT-2 well, one of the two new production wells drilled into the Patola field in the BM-S-40 production license in Brazil, came onstream on 15th March 2023 at a rate of 12,000 – 14,000 bopd. The field has better reservoir quality than expected, which resulted in Proven and Probable (2P) Reserves at Patola being upgraded by 1.7 MMbbl to 16.4 MMbbl as at 31 December 2021. Production from the second well, PAT-1, is expected to commence by the end of March 2023.

Subsea Flowline and Umbilical Installed

The announcement from Karoon Energy confirms that the first production has been achieved from the Patola field at rates above expectations. The company advised that the installation of a subsea flowline and umbilical, connecting the well to the Cidade de Itajaí FPSO, along with the completion of the well and infrastructure commissioning activities, was responsible for the early success.

Patola Field

The Patola field was discovered in 2011 by Petrobras with the SPS-91 exploration well. The field lies in a water depth of approximately 280 meters and was acquired by Karoon Energy in June 2021. The field has similar petrophysical properties as those found in nearby Baúna and Piracaba.

Production Rates and Future Development

After an initial period of flush production, output from the two Patola wells is expected to stabilize at approximately 10,000 to 15,000 bopd, taking total production from BM-S-40 to more than 30,000 bopd before natural decline commences. Depending on the reservoir and aquifer response, one of the two production wells may be switched to water injection in the future, while any associated gas production from Patola will be reinjected into the Baúna reservoir through the SPS-89 gas injection well.

Conclusion

This announcement of first production from Patola field is excellent news for Karoon Energy, providing them with an early boost on their first new field development in Brazil. The early success is attributed to the quality of the reservoir at the Patola field, as well as the efficient execution of the project. The decision to proceed with the development of the field was announced by Karoon in June 2021, and this successful outcome will provide reassurance to investors in the company.

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