Karoon shares gain as drilling commences at Who Dat West
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The news: Shares in Karoon Energy climbed in early trading on the ASX as drilling commenced at the oil and gas producer's 35% owned Who Dat West exploration well in the US Gulf of Mexico.
The numbers: Karoon shares were up 1.9% to $1.33 by 10:45am AEDT, making it the best performing ASX 200 stock.
Energy, up around 1%, was the only sector in green as the ASX 200 fell 0.41%. Fellow oil and gas majors Beach Energy (1.1%), Woodside Energy (1%), Santos (0.6%) and Ampol (0.2%) also gained even as global crude benchmarks lowered.
The context: Karoon said drilling at the Who Dat West exploration well will take around 50 days to drill and evaluate. An independent expert has estimated that the prospect contains 77 million barrels of oil equivalent (MMboe), with Karoon's share totalling 21.6 MMboe on a net revenue interest basis.
Karoon — which shares the Who Dat West joint venture with US companies LLOG, Westlawn Americas Offshore and Houston Energy — said the geological probability of success has been assessed at 36%.
The source: ASX announcement
