Money Markets
Pancontinental said exploration for the onshore part of the block is fully funded. PHOTO | FILE
By CHARLES MWANIKI, cmwaniki@ke.nationmedia.com
In Summary
- Pancontinental holds a 16 per cent stake in the L6 onshore block, with Dubai-based Milio Ltd holding 60 per cent and Australian explorer FAR Ltd 24 per cent.
Australian oil explorer Pancontinental says the
drilling of the first well in the Lamu L6 onshore oil block will begin
quarter four of 2015.
In its third quarter 2014 investor update, Pancontinental
said it is also hopeful of seeing three wells drilled in the L6
offshore, L10A and L10B blocks by the end of next year. This would be
subject to agreement with other explorers jointly holding the blocks.
Pancontinental holds a 16 per cent stake in the L6
onshore block, with Dubai-based Milio Ltd holding 60 per cent and
Australian explorer FAR Ltd 24 per cent.
“Once newly acquired data is integrated with
existing records, a well site will be determined. Current plans, subject
to operational and other conditions, are for drilling to commence in
quarter four of 2015,” said Pancontinental in the briefing to investors
last week.
The firm said exploration for the onshore part of
the block is fully funded, while it is still seeking to farm out part of
the Lamu offshore interest to fund exploratory works.
On the offshore part of the block, Pancontinental holds 40 per cent with FAR holding the operator rights at 60 per cent.
The plans for further exploration work follow the
discovery of oil deposits on the Sunbird-1 well on the L10A block off
the coast of Mombasa earlier this year.
According to Pancontinental, assessments showed the
presence of a gross oil column 14 metres thick, and a gas column of
29.6 metres, although it was not in commercially viable quantity.
Pancontinental holds minority stakes of 18.75 per cent and 25 per cent on the L10A and L10B blocks respectively.
British firm BG Group is the majority stake holder
on the two blocks with 50 per cent on L10A and 75 per cent on L10B,
while PTTEP holds a 31.25 per cent stake in the L10A block.
“Following the Sunbird-1 discovery, previously
known prospects and leads in both L10A and L10B are being revisited in
light of the drilling results…the joint venture is now planning the
optimal locations for seeking commercial oil reserves,” said
Pancontinental.
The success of Tullow’s exploratory drilling in
Turkana and the offshore prospects coming from the L10A have seen an
increase in activity in the Lamu and Mandera basins.
London Stock Exchange-listed Afren plans to drill a
well at Block-1 on the Mandera Basin, and has made applications for
approval to the National Environment Management Authority.
Another LSE explorer, Tower Resources, also plans to drill a well on Block 2B where it holds a 15 per cent stake.
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