The company confirmed that it had recovered oil from five separate reservoirs in the well, intersecting a 250m gross oil column and 135m net reservoir pay.

The well failed to intersect an anticipated gas cap, however, with shallower than expected oil-water contacts in some of the sands.

Karoon is now assessing the impact of the well results on the contingent resource size of the Kangaroo discovery.

Splitting up the gross oil discoveries, the Palaeocene sections was determined to contain 90m of gross oil bearing reservoir with three separate oil columns.

The Maastrichtian section contained two oil bearing reservoirs totalling 160m.

The Kangaroo-1 discovery well encountered a 76m oil column, so the Kangaroo‐2 appraisal well will be drilled 290m up-dip of the discovery and hoped to define a gross column up to 600m thick.

Karoon has calculated that the Kangaroo structure could host between seven million barrels of oil to some 487MMbbl.

Wireline logging is expected to be completed soon with a production test to follow.

The company may decide to sidetrack and core the well subject to the final logging results, with all operations on the well expected to be completed in the next four weeks.

Following Kangaroo-2, the drill rig will move to spud Kangaroo West-1 which is located over the same salt structure and trap type as Kangaroo-2.

Kangaroo West will test for a potential 330MMbbl with upside to more than one billion barrels.

A further two contingent wells are also factored into the rig contract, providing the company with the option for further appraisal of the Kangaroo discovery, as well as Kangaroo West if the exploration well proves successful.

The information obtained from Kangaroo-2 will be crucial in assessing the commerciality of the field and, if successful, will form the basis for a front-end engineering and design phase.

Karoon holds a 65% interest in the Kangaroo Block and is the operator while Pacific Rubiales Energy holds the remaining 35%.

Karoon's shares were trading 8.67% up on the news this morning, commanding $3.195 per share.