The new gazettal area, currently known as WO6-6, also lies east of the Woodside Petroleum-operated Torosa (formerly Scott Reef) gas/condensate field, off Western Australia.

Conoco will be operator and hold a 60% interest in the new acreage, while Karoon will own the remaining stake.

Karoon announced the news in its response to a share price query by the Australian Securities Exchange.

The query was made after KAR shares rose from $1.70 last Friday to $2.17 today.

“While information concerning any offer of W06-6 could conceivably have caused an increase in Karoon’s share price had it been known, Karoon believes that such information has remained confidential up to the date of this release and that such information does not explain the recent trading in shares,” the company said.

Instead, Karoon attributed the share price increase to its upcoming Browse drilling campaign and its addition to the All Ordinaries Index.

Drilling at the joint venture’s WA-314-P and WAW-315-P permits is expected to take place between late 2007 and early 2008, depending on the availability of a drill rig.