Karoon received written notification from the Agência Nacional do Petróleo (ANP) that the Discovery Appraisal Plan (Plano de Avaliação de Descobertas or PAD) for blocks S‐M‐1101, S‐M‐1102, S‐M‐1037, S‐M‐1165 and S‐M‐1166 has been approved.
The PAD governs the next stage of the Concession Agreement and outlines the forward appraisal work program commitments Karoon will undertake on the Blocks. The work program comprises a number of firm commitments to be completed by 31 December 2014, and contingent commitments to be completed by 31 December 2016.
The PAD consolidates the Blocks into one work program, which, following the integration and analysis of results from the firm commitment period, provides Karoon the maximum flexibility to focus the contingent work program on those projects that present the best potential development opportunity.
Approval of the PAD was the final regulatory hurdle to be cleared prior to contracting a rig and committing to the Phase 2 exploration and appraisal drilling campaign.
