Karoon Gas has waived its pre-emptive right to acquire a 20% interest in two Browse Basin exploration permits that partner ConocoPhillips is selling to PetroChina.

The company instead welcomed the Chinese state owned company's entry into WA‐315‐P and WA‐398‐P offshore Western Australia, which includes the Poseidon gas condensate discovery.

It noted that not only was PetroChina a second highly appropriate partner for the future development of the Poseidon project, it was also a potential end user for liquefied natural gas out of Poseidon.

The joint venture has also exercised a drilling option to extend the Transocean Legend semi‐submersible rig contract to six firm wells for the Phase 2 drilling program.

A single well option remains to be exercised with a decision required later in the drilling campaign.

The Transocean Legend is currently drilling the Proteus‐1 exploration well, the third well in the program.

The previous Zephyros‐1 well is expected to be capable of flowing gas at similar rates as the Kronos-1 gas discovery.

However, the ConocoPhilips-led joint venture has opted not to production test Zephyros‐1 due to its many similarities with Kronos-1.

Karoon had $228.3 million in cash as of 31 December 2012.