Karoon Rises After Second Oil Discovery Off Brazil: Sydney Mover
Karoon climbed as much as 28 percent to A$5.12, the most since April 27, 2009, while Australia’s benchmark S&P/ASX 200 Index gained as much as 1.4 percent. The shares traded at A$4.96 as of 11:48 a.m. local time.
Oil was found at the Bilby-1 exploration well in Brazil’s Santos Basin, with evaluation of the discovery expected to continue through May, the Mt. Martha, Victoria-based company said today in a statement. That follows the company’s oil discovery at the Kangaroo-1 well in January.
Karoon, cited in December as a possible takeover target by Citigroup Inc., is exploring off the coasts of Brazil and Peru after scrapping a proposed initial public offering of its South American business in November 2010. Colombia’s Pacific Rubiales Energy Corp. (PRE) agreed in September to acquire a 35 percent stake in Karoon’s blocks off Brazil.
Work is under way to obtain a drilling rig to appraise the Kangaroo and Bilby fields and other prospects, Karoon said today. The three-well drilling program comprising Kangaroo, Emu and Bilby will finish after the evaluation of Bilby-1, the company said. Oil was confirmed from sampling a more than 200-meter (656-feet) section, Karoon said.
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