Karoon Energy Ltd., Melbourne, completed drilling the Neon-1 control well in Neon field in Santos basin offshore Brazil, confirming primary reservoir targets are present and oil-bearing.
The well, officially 9-NEO-1-SPS, reached a total depth of 2,382 m and wireline logging is under way.
Neon-2 was drilled into the down-dip southern flank of the Neon discovery to gather better data on lithologies and reservoir quality and to reduce the uncertainty of the oil-water contact. Results will assist in delineating pathways of potential future production wells, Karoon said.
The Palaeocene reservoir intervals, representing an extension of reservoirs tested in nearby Echidna-1 (which found the now renamed Neon field), were found to be present over a gross interval of 113 m. A probable oil-water contact has been identified.
Importantly, an analysis of pressure tests through the Palaeocene section indicates that oil lies on the same pressure gradient as oil in Echidna-1, which suggests communication between the two wells.
Evaluation of well data at Neon-1 is ongoing and all information will be the subject of further studies and calibration from laboratory analyses of physical samples, including the 57 m of core obtained from the well.
Karoon will proceed to drill Neon-2, which will be directionally drilled to intersect a crestal location in the northern part of Neon field with the aim of determining the quality and continuity of the Palaeocene units as well as Palaeocene pressure connectivity with the two wells drilled to date. Neon-2 also will test a deeper zone below the existing Palaeocene discovery.
Resource estimates for Neon, made in May 2018 upon discovery, are 30 million bbl of 1C contingent resources, 55 million bbl of 2C, and 92 million bbl of 3C. A revised estimate when the two control wells are completed, Karoon said.
Neon-2 is expected to spud before month's end.
Neon field lies in Karoon’s 100%-owned S-M-1037 license, about 210 km offshore.
Neon-1 is in 343 m of water about 2 km south of Echidna-1. Neon-2 will lie 1.3 km north northeast of Echidna-1 in 305 m of water.