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## 2010-2011 OPERATIOnS COnTInUEd 

fOR THE fInAnCIAL YEAR EndEd 30 jUnE 2011 

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## Drilling 

The Blackford Dolphin semi-submersible drilling rig has now been contracted and it is expected to commence drilling during the first half of calendar year 2012. Karoon has a firm commitment to drill three wells. The Karoon drilling team is well advanced in preparations for drilling with environmental and regulatory approval processes underway. Supply bases have been contracted and long lead inventory items are currently being delivered. Drill targets are expected to be finalised at the completion of the interpretation later during calendar year 2011. Karoon also recommenced a farm-out process during September 2011, with initial data room bookings in place and several potential joint venture partners showing an interest in participation. 

## Equity Interests 

Karoon currently has a 100% equity interest in Blocks S-M-1037, S-M-1101, S-M-1102, S-M-1165 and S-M-1166. 

