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Kenya’s Block L6 farmout pushed further to late 2015

  1. ksingh

    736 Posts.

    Kenya’s Block L6 farmout pushed further to late 2015

    January 30, 2015

    Block L6 operator Australian explorer Far Ltd has said it does not expect a farmout deal on the northern extent of the block until late in 2015.

    In the offshore portion where the company holds 60 percent paying interest Far says it continues to progress with a farmout initiative.

    The deal was initially expected to occur in the third quarter of 2014 before it was later pushed to the first quarter of 2015 and is intended to fund the drilling of an offshore well that is set for 2015.

    “In relation to the offshore portion of Block L6 where FAR has a 60% interest, FAR is currently progressing a farm out initiative for drilling an offshore well,” the company says in its latest report.

    The farm out is progressing to secure funding for the drilling of an offshore well on Block L6. The well follows the recent Sunbird-1 discovery well drilled by the BG Group with the Miocene reef play extending along the Kenyan coast and through both of FAR’s offshore blocks, L6 and L9.

    With the discovery of oil in the Sunbird-1 well at the southern extent of the Miocene reef play and evidence for oil in the Maridadi well drilled at the northern extent in L6, FAR says it has continued to witness strong industry interest in its L6 farm out opportunity.

    Offshore the company has drill ready prospects in Kifaru and Tembo with a projected estimate potential of 170mbo and 327MBO of oil respectively out of the 3.7BB0 prospectivity respectively.

    Far is working in the block under an extension after it received a 1 year extension in the PSC term of Block L6 after the company delayed planned activities Government of Kenya due to the inability to access the ground to complete planned seismic operations because of security incidents in the acreage in mid 2014.

    Meanwhile the company reiterates it continues to pursue entry into Block 9 after the agreement between FAR and Ophir Energy (the Operator of Block L9) expired on 23 July 2014. The ongoing discussions are regarding FAR’s entry into the block and the plans for a future work program in the permit.

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