Sep 12 - Pancontinental Announces First Offshore Kenya Gas Discovery

Source Press Release
Company Pancontinental Oil & Gas NLApache CorporationOrigin Energy LimitedTullow Oil 
Tags Discovery, Upstream Activities
Date September 10, 2012

Pancontinental Oil & Gas NL  announced a significant gas discovery in the Mbawa 1 exploration well in the L8 licence area offshore Kenya. Drilling is now continuing towards a deeper exploration target.

HIGHLIGHTS

  • First ever substantive hydrocarbon discovery offshore Kenya
  • Approximately 52 net metres (~170 feet) of natural gas pay encountered so far
  • Drilling has recommenced towards a deeper exploration target

The Mbawa 1 well has encountered approximately 52 net metres (approx. 170 feet) of natural gas pay in porous Cretaceous sandstones.

The Mbawa 1 exploration well was drilled to a depth of 2,553m RT (below the drill floor), at which point wireline logs, fluid samples and sidewall cores were acquired from the well. Reservoir and fluid parameters will become available as logs and sample analyses are completed.

Drilling has recommenced towards the planned TD of 3,275m RT. A secondary exploration target lies above the planned TD.

Barry Rushworth, CEO and Director of Pancontinental said: “While we have not finished operations in Mbawa 1, this gas discovery is very promising and it is the first ever substantive hydrocarbon discovery offshore Kenya. We are delighted to prove that there is a working hydrocarbon system offshore Kenya. Further work continues to evaluate the size of the discovery.

We thank the Government of Kenya for its cooperation and support in achieving this very positive initial outcome for the country of Kenya, for the L8 joint venture and for Pancontinental. With drilling continuing to a deeper exploration target, these interim results may be the first part of the story in this well, and they are certainly just the beginning of the main story of oil and gas exploration offshore Kenya.”

The Kenya L8 Joint Venture consortium consists of-  

 Apache Corporation (Operator)   50%
 Origin Energy Limited    20%             
 Pancontinental Oil & Gas NL   15%*   
Tullow Kenya B.V.     15%

*Pancontinental’s 15% interest is “free-carried” through Mbawa drilling by Tullow Oil plc up to a  “cap” of US$ 9 million (as reduced by other exploration expenditure). After the first earning phase Tullow has an option to earn a further 5% by providing funding on Pancontinental’s behalf to a  
cap of US$ 6 million in any second well.

Source: EvaluateEnergy® ©2020 EvaluateEnergy Ltd