Karoon Gas has encountered five separate oil bearing reservoir sand intervals in its Kangaroo-2 appraisal well in the Santos Basin.
The company said it had made the discovery within the Palaeocene and Maastrichtian formations in waters offshore Brazil.
Work is now continuing to assess the impact of the well results on the resource size as no gas cap was penetrated and there was shallower oil water in some of the sands.
Multinational energy corporation Petrobas has made an oil discovery at an exploration well in the giant Libra prospect.
The well is the first drilled by the consortium, which won the right to explore and develop the area.
