Project Profile
Location: Anza and Mandera Lugh basins, Kenya
Area: 7,807 km2
Reserves: 387 million barrels of oil equivalent of unrisked prospective resources
Start - up: 2014
Block 2B was awarded to Lion in 2008 and is situated in north eastern Kenya at the convergence of the Anza and Mandera Lugh basins. The block covers a total area of 1.9 million acres (7,807 km2). Exploration carried out in the past includes 1974-75 vintage 2D seismic and one exploration well drilled in 1990. Block 2B is located at the southernmost extension of the northwest-southeast trending Anza Graben, near the juncture with both the Mandera-Lugh and Mochesa Basins. The Block contains both Tertiary and Cretaceous plays. The Tertiary plays are analogous to the Tullow Oil plc and Africa Oil Corporation Ngamia-1 discovery located in the main Tertiary rift to the west. The Cretaceous plays are a potential extension of the Sudanese oil-productive Melut and Muglad basins. The NI 51-101 report completed by Sproule Associates Limited concludes that Block 2B has a mean of 387 million barrels of oil equivalent of unrisked prospective resources within the 17 exploration leads identified thus far. Block 2B was 100% owned by Taipan\'s wholly owned subsidiary Lion Petroleum Corp, however, in Oct 2013 Premier Oil farmed in 55% interest in the block.
Taipan commenced a farm-out process for Block 2B onshore Kenya in August 2012. The company is currently in discussions with a number of potential farm-in partners and expects to announce a definitive farm-out agreement by year-end 2012 subject to the approval of the Government of Kenya. The company expects to sign a 2D seismic contract for Block 2B with seismic contractor BGP and to mobilise the seismic crew in November 2012 subject to weather conditions and approval of the Kenyan Government. In 2015, Premier exercised their right to exit the joint venture of Block-2B with effect from 30 April 2015. Accordingly, Lion and Tower’s working interests in the Block will be adjusted on a pro-rata basis (Lion 66.66%, Tower 33.34%) for the remaining approximately six months of the current licence phase (unless otherwise agreed).
Operators:
Lion Petroleum Corp (Taipan): Operator with 66.66% interest
Tower Resources plc: 33.34% interest
Contractors:
ARKeX Ltd: Undertake full tensor gravity gradiometry survey
BGP seismic: Seismic contractor
Greatwall Drilling Company: Letter of Intent to contract its GW-190 land rig for the planned Badada-1 well onshore Block-2B, Kenya expected to take approximately 70 days to drill