Karoon shares tumble after Who Dat West well is abandoned
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The news: Shares in Karoon Energy lowered on the ASX as the oil and gas explorer said that its part-owned Who Dat West exploration well in the US Gulf of Mexico will be permanently abandoned after an unsuccessful drilling campaign.
The numbers: Karoon shares were down 3.2% to $1.45 by 11:50am AEDT, having advanced more than 17% over the last month.
An independent expert had estimated that the Who Dat West 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 — previously said the geological probability of success had been assessed at 36%.
The context: Who Dat West is the final well of the Who Dat exploration and appraisal campaign, which resulted in discoveries at Who Dat East and Who Dat South.
In late 2024, Karoon shares climbed after it said had commenced drilling at Who Dat West and that it would take 50 days to drill and evaluate the exploration well.
Drilling at Who Dat West found "no significant hydrocarbon bearing intervals" within the drilled section.
Karoon said with the drilling campaign concluded, the Who Dat joint venture will now begin studies on the potential development options for the discoveries.
The source: ASX announcement
