Taipan Targeting 1.6 Billion Barrels of Oil in Kenya
15 February 2014 - 1:00AM
Access Wire
SOURCE: Commodity Dispatch / February 14, 2014 /
Taipan Resources (TPN-TSX.V) announced that the total estimated
Mean Gross Unrisked Prospective Resource on Block 2B in Kenya has
increased by 388% from 410.4 million-barrels-of-oil-equivalent
(MMBOE) to 1,593 MMBOE.
Taipan is an independent, Africa-focused oil exploration company
with interests in Block 1 and Block 2B onshore Kenya.
The independent assessment of Block 2B was carried out in
accordance with 51-101 Standards of Disclosure for Oil and Gas
Activities.
The Pearl-1 prospect, expected to be drilled later this year,
has an estimated Mean Gross Unrisked Prospective Resources of 251
MMBOE.
Premier Oil plc is carrying Taipan through the cost of the work
program for the First Additional Exploration Period on Block 2B.
This includes the drilling and testing of the Pearl-1 prospect.
Taipan holds a 45% interest in Block 2B and is the operator during
the exploration phase with Premier having the right to assume
operatorship of any development.
Premier Oil is a leading FTSE 250 independent exploration and
production company with interests in the North Sea, South East
Asia, the Middle East, Africa, Pakistan and the Falkland
Islands.
Premier Oil’s portfolio of oil and gas assets delivered
production of approximately 58,000 barrels of oil per day (boepd)
in 2013, and it has various projects in the development phase which
should increase production to over 100,000 boepd in the
medium-term.
Premier became active in Kenya in 2011 with the signing of two
PSCs for offshore exploration blocks L10A and L10B.
On February 3, 2014 Taipan announced that it had commenced the
acquisition of further 2D seismic data on Block 2B, onshore Kenya.
The data is being used to finalize the drilling location for the
Pearl-1 prospect.
An independent contractor is providing an additional 178.75 km
of 540 fold 2D seismic data. The seismic program is expected to be
completed by the end of February.
"The Pearl-1 exploration well will target a Tertiary prospect
that is in a similar geological setting to Tullow's Ngamia, Twiga,
Ekales, Agete and Amosing discoveries,” stated Taipain CEO Mr.
Maxwell Birley, “The Anza Basin is one of the largest Tertiary-age
rift-basins in the East African Rift systems that together contain
multi-billion barrel oil discoveries. We believe that the 'sweet
spot' of the Anza Basin is located on Block 2B."
In addition to Taipan’s 45% working interest in Block 2B (1.35
million acres/5,464km2), TPN holds a 20% working interest in Block
1 (5.497 million acres/22,246 km2) which is operated by East Africa
Exploration, a subsidiary of Afren plc.
According to a February 12, 2014 Bloomberg article, “Kenya, East
Africa’s largest economy, may become the region’s first exporter of
oil as soon as 2016, leapfrogging neighboring Uganda. “Tullow Oil
(TLW.LSE), which found Kenya’s first crude, said the East African
nation considers the start of production and exports as a ‘national
priority’.”
Africa Oil (AOI-TSX) and Tullow are working with the Kenyan
government to construct and export pipeline.
“They see it as a project of national priority and they are very
focused on getting first oil from Kenya as soon as practical, but
doing it properly,” states Tullow Chief Operating Officer Paul
McDade in the Bloomberg article, “They [Kenya] recognize that the
pipeline from northern Kenya to the coastline is the critical path,
and they are in a strong dialog with us.”
Kenya’s has a population of 41 million with a high percentage of
well-educated English-speaking multi-lingual professionals. Almost
70% of the population under the age of 35.
Kenya is currently the world’s top onshore oil exploration area.
There is an estimated 22.7 billion barrels gross un-risked
prospective resources. The region is still largely unexplored. Only
58 wells have been drilled in Kenya. There are 20 wells planned in
2014. Taipan is the 4th largest gross acreage holder in Kenya.
Taipan management has discovered over 3.75 billion barrels of
oil equivalent in similar early stage basins with success rates up
to 80%.
In Premier Oil, Taipan has a senior partner with $180 million
cash on hand, fully invested in the success of Block 2B in
Kenya.
TPN stock surged 25% on the news of the 388% increase to the
Unrisked Prospective Resource on Block 2B. It is currently trading
at .32 with a market cap of $27 million.
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