Project Profile
Value: US$100 -250 M (estimate)
Location: Lamu basin on the northern coast of Kenya
Area: 5,630km2 (L4) 2,180km2 (L13)
Reserves: Gross resource estimate of approximately 1,115 Bcf
Exploration start-up: 1971
Blocks L4 and L13 are sizeable exploration blocks located in the highly prospective gas prone Lamu basin on the northern coast of Kenya. The drilling and development strategy is to prove up the resources, which have a Mid Case aggregate gross resource estimate of approximately 1,115 Bcf and through a gas to power development deliver electrical power for sale into the Kenyan national grid. A drilling campaign has been planned for 2017 in which the Operator will drill two wells: namely a well to ‘twin’ the Pate 1 well which was drilled by a Shell and BP consortium in 1971 and discovered gas in the Pate field; and, assuming technical success, a long reach deviated well to further appraise the field.
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. The development benefits from being onshore, having close proximity to a connection to the national electricity grid and potential for a phased development to meet demand.
Operators:
Zarara Oil and Gas Limited (a wholly owned subsidiary of Midway Resources International): Operator with 75% interest
CH-Swiss Oil Holdings International (currently no website): 15% interest
National Oil Company of Kenya: 10% interest