Australian Karoon Announces Increase in Proved, Probable, and Possible Reserves for Block BM-S-40, Located in the Santos Basin

Through investments in block BM-S-40, the company Karoon achieved an increase in proven, possible, and probable reserves located in the Santos Basin.

The oil company Karoon announced an increase in its 1P, 2P, and 3P reserves. The proven reserve (1P), located in block BM-S-40, which encompasses the producing fields of Baúna and Piracaba and the Patrola field, is still evolving. The block is located in the Santos Basin and has 42.8 million barrels of reserves, according to an evaluation revised and certified by AGR Energy Services, on December 31, 2022, Saturday. Additionally, the company also detailed that block BM-S-40 has 55 million barrels in proven and probable reserves (2P), and 65.5 million barrels in proven, probable, and possible reserves (3P). The volumes represent increases of 17%, 23%, and 7%, respectively.

What Are Proven, Probable, and Possible Reserves?

Proven reserves (1P) correspond to the amount of oil or natural gas whose analysis of geosciences and engineering data indicates with reasonable certainty that they are commercially recoverable resources. Where the probability of resource recovery is equal to or greater than the estimate corresponding to 90%.

In probable reserves (2P), the probability of resource recovery corresponds to at least 50%, based on the total resource value. In possible reserves, this value corresponds to 10% of the amount of resources.

Aiming to Grow Reserves, Karoon Plans to Climb the Ranking of Oil Companies in Brazilian Territory

“The material increase in Baúna’s reserves follows extensive reprocessing of seismic data, reservoir modeling, and dynamic simulation work carried out by our technical teams in Brazil and Australia,” says Karoon’s CEO, Julian Fowles.

“The resolution of the reprocessed seismic data is significantly better than the legacy datasets, reducing uncertainty in field volumes. The results of the three recently completed interventions in the Baúna well were very positive and, along with the information from the two Patola wells, provided valuable additional data points that also helped in defining the reserves,” he added.

The oil company has also recently made progress in preparations to start production in the Patola field. The company’s expectation is to begin production in the area by the end of the first quarter of this year.

The Noble Developer drilling rig completed its drilling schedules in mid-January. The accommodation of the wells and Christmas trees in the two Patola wells was completed earlier this month.

The Australian company will have invested about US$ 1 billion since it established a subsidiary in Brazilian territory in 2008, potentially becoming the third-largest private oil producer in Brazil, excluding Petrobras, in the first half of 2023, Fowles stated.

Learn a Little About Karoon Energy and Its Operations in the Santos Basin

Karoon Energy is a globally focused energy company with oil production and exploration assets in Brazil. Headquartered in Melbourne, Australia, but with offices located in Rio de Janeiro and Santa Catarina.

The oil company’s objective is to generate profits through a high-quality portfolio of production and development assets, promoting energy for a dynamic world and, thus, responsibly creating benefits for all its stakeholders.

The company is committed to the environment and sustainability. As such, it neutralizes carbon from Scopes 1 and 2, avoiding the emission of greenhouse gases (GHG). The company aims to be NetZero (not emit more carbon or neutralize its emission) across all scopes by 2035.