Brief Introduction

Location of oil field：located in the Lamu basin, northern coast of Kenya.
Distribution and area of oil field：the L4 block being approximately 5,630 square kilometres and the L13 block being approximately 2,180 square kilometres.
Reservoir information：Mid Case aggregate gross resource estimate of approximately 1,115 Bcf.
Exploration and development history：

In 1964, the consortium had previously drilled Dodori-1 well, which is located 30km to the northeast of Pate-1, in Block L13. Dodori-1 was drilled to a depth of 4,159 metres, exceeding 2 mmscf/day.
The Pate field was discovered in 1971 by a Shell and BP consortium while drilling the Pate-1 well which encountered over-pressured gas-charged sands in the Basal Kipini reservoir at 4,175 metres MD. The well was intended to test Lower Tertiary and Upper Mesozoic strata and was a follow up of Dodori-1 which encountered small shows and traces of bitumen in the Paleocene.
In 2011, the aero-gravity/magnetic survey conducted by Zarara in order to identify abnormities in the subsurface formation which indicated additional areas of potential hydrocarbons.
The results of the aero-gravity/magnetic survey, processing of seismic data and information on other wells drilled in the Lamu embayment were integrated by Rockflow for Zarara to determine the resource potential.
In 2014, Midway Resources International(MRI) had completed the acquisition, processing and interpretation of 6,262 line kms of gravity-magnetic data across the original area of its operated Blocks L4 and L13.
In May 2016, field work, in respect to the application for an environmental permit for the drilling campaign was undertaken. In July 2016, initial field work commenced in respect of assessing drilling requirements and options for logistics, civils works and in country capabilities.

Change of rights and interests

On 3rd September 2008, the two blocks were relinquished by the consortium and licensed out by the Ministry of Energy and Petroleum to Swiss Oil Holdings International (SOHI) under two separate Production Sharing Contracts (PSC).
On 4th April 2011, SOHI farmed out a 75% interest and operatorship in each licence to Zarara, a private exploration company.
On 1st May 2012, Zarara was acquired by a subsidiary of Midway Resources International.
Zarara Oil and Gas Limited holds 75% working interest. CH-Swiss Oil Holdings International holds 15% and the National Oil Company of Kenya at 10%.

Expected workload

The project will be developed in a number of phases. Phase 1 comprises development of an early production facility requiring two wells and small gas handling and processing facilities designed to feed locally sited electricity generation modular units. Subsequent phases will involve drilling more wells and building additional gas processing and power generation facilities to allow for increased production to meet growing electricity demand.

Pate-1 will be drilled as a vertical well and is expected to take up to 120 days to drill, test and complete. The Pate-2 well has a target depth of 4,500 metres and a primary target of the Kipini sandstone with the secondary target of the deeper, but prolific, Kofia sandstone. At this stage it is envisaged that Pate-3 well will be drilled from the Pate-2 pad, and deviated using directional drilling to a vertical depth of 4,500 metres. The total measured depth will be approximately 5,000 metres, increasing the required drilling time to approximately 120 days to drill, test and complete.

Company behavior

In 2014, following extensive negotiations with the Kenyan Government Midway Resources International regularised its PSCs by advancing into the 1st Additional Exploration Period of 3 years ending December, 2015.
In 2017, Zarara planned a drilling campaign, in which it would drill two wells. Detailed well engineering and the tendering process was due to be completed early in Q1 2017.
In 2017, Zarara received an eighteen month license in Kenya’s block L4 and L13 extension to January 2019 after the lapse of an earlier 18 month licence extension through to June 2017 to the First Additional Exploration Period on both of the production sharing contracts expired on June 3rd 2017.
In 2018, Zarara Oil and Gas awarded 4 month License Extension in Kenya’s Blocks L4 & L13. The second extension means the contract will now expire on 2nd April 2019.