Karoon Gas Signs Farm-in Agreement With Vamex

Exploration and production firm Karoon Gas Australia has signed a farm-in agreement with Vietnam American Exploration Company for the exploration of Block Z38 located in the offshore Tumbes basin in northern Peru.

Subject to the receipt of regulatory approvals, Karoon will earn an initial 20% interest in the block by funding a new 2,000km 2D seismic survey with the option of earning an additional 40% interest in the block by acquiring 670sqkm of new 3D seismic data.

The acquisition of the required permits and approvals for conducting of the 2D seismic survey is reportedly nearing finalization. The geotechnical analysis of the existing data indicates that the block is prospective for both oil and gas.

Preliminary economic evaluation by Karoon indicates that any offshore development could be rapidly brought to production due to the close proximity of existing oil and gas infrastructure.

Karoon stated that the farm-in further represents its strategy of diversifying its asset base by securing large equity interests in prospective exploration areas. Vamex is a 100% subsidiary of Pitkin Petroleum, a US-based independent oil and gas company.