By Ross Kelly
SYDNEY--A natural gas exploration and appraisal campaign
offshore northern Australia led by ConocoPhillips (COP) is back on
track after technical problems with well safety equipment were
addressed, partner Karoon Gas Australia Ltd. (KAR.AU) said
Friday.
Drilling of the Boreas-1 well was held up after its blowout
preventer malfunctioned. Blowout preventers sit on the ocean floor
and are designed to control oil and gas wells and prevent leaks.
Their integrity has come under greater scrutiny following the
Montara oil spill offshore northern Australia and the much larger
Macondo spill in the Gulf of Mexico.
Blowout preventer "troubleshooting and function testing was
completed satisfactorily" and the Boreas-1 well's casing was
successfully pressure tested, Karoon said in a statement.
The pair are attempting to prove up enough gas to support a
possible expansion of the Darwin gas-export plant, or construction
of a new standalone export facility.
At 0243 GMT, Karoon shares were up 4.5% at A$4.41.
-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692;
Ross.Kelly@dowjones.com
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