Karoon has issued a default notice due to joint venture partner Pacific Exploration and Production Corp. for overdue payments for several blocks offshore Brazil.
The planned Echidna appraisal drilling campaign scheduled for the September quarter 2016 is currently under review and a status update will be provided in due course.
Karoon’s Managing Director Robert Hosking said, “While it is unfortunate the JOA default provisions have been triggered, Karoon and Pacific will be working together to remedy the current situation as quickly as possible. It is in both our interests to work together to resolve this issue in a timely manner and continue with the good work done on the Echidna light oil discovery to date.”
Karoon is the operator and 65% stakeholder in Santos Basin Brazil blocks S‐M‐1037, 1101, 1102, 1165 & 1166, and Pacific (35%).
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