Oct 11 - Kenya L8 - Completion of Pancontinental - Tullow Farmout

Source Press Release
Company Tullow OilPancontinental Oil & Gas NL 
Tags Deals, Upstream Activities
Date October 07, 2011

Pancontinental Oil & Gas NL (“Pancontinental”) is pleased to announce the completion of a farmout of part of its interest in Kenya licence L8 to Tullow Kenya B.V. a wholly owned subsidiary of  Tullow Oil plc (“Tullow”). The farmout was concluded by the signed consent of the Minister of Energy of Kenya and by the satisfaction of all other conditions precedent.

The Kenya L8 consortium now consists of-

The completion follows the announcement on 7 March 2011 that Pancontinental had signed an agreement with Tullow for Tullow to farmin to a 10% interest in the licence over offshore Kenya Block L8 that contains the giant Mbawa Prospect.

Pancontinental will retain a 15% interest in L8 and after the first earning phase Tullow will have an option to earn a further 5% by providing further funding on its own and on Pancontinental’s behalf. Based on current budgets, under the first part of the farmout Tullow will “free carry” Pancontinental through a major portion of the L8 programme that includes drilling the giant Mbawa Prospect.

Tullow is one of the most successful petroleum exploration companies of recent times in Africa, both onshore and offshore.

The Tullow farmins follow another farmout transaction by Origin and the US major Apache Corporation (“Apache”) announced on 16 February. Apache has taken 50% from Origin’s interest and has taken over from Origin as L8 operator. Apache is widely regarded in the petroleum industry as one of the most successful, safe and efficient offshore operators.

Mbawa Drilling

Incoming operator Apache is examining the availability of drilling rigs that are suitable for drilling the Mbawa Prospect. A suitable rig and the Mbawa drilling date will be set after further discussion with rig operators.

Source: EvaluateEnergy® ©2020 EvaluateEnergy Ltd