Karoon Gas Australia Ltd.’s Echidna-1 well hit hydrocarbons in a Paleocene sand section of Block S-M-1102 in the Santos Basin in Brazil, the company said April 13.

Mud log and LWD data revealed the oil-bearing section. The mud log shows elevated gas readings and oil florescence in sandstones. Wireline logging will now be conducted to ascertain the extent of the gross and net columns.

Echidna-1 reached the planned 2,379 m (7,805 ft) total depth, the company said.

The presence of a Paleocene oil column needs to be confirmed with data from the planned wireline logging program, which will begin immediately. The program will involve taking pressure data, reservoir fluids sampling and petrophysical logging.

Additional intervals of elevated mud log gas and oil florescence have been observed in the Maastrichtian section and will be further evaluated during the program.

Karoon (ASX: KAR.AX) is using the Olinda Starr semisubmersible drilling rig.

Karoon holds a 65% interest in, and operates, Block S-M-1102. The block is jointly held with Pacific Rubiales Energy Corp. (TO: PRE), with a 35% working interest.

Karoon Gas Australia Ltd. is based in Victoria, Australia.