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Kenya extends Australia firm licence for explore oil
May 18,2014

NAIROBI, May 17 (Xinhua) -- The Kenyan government has granted a year extension to an Australian oil and gas firm Pancontinental to plan future explorations in the East African nation.

Pancontinental said in a statement released on Saturday that it intends to use the extended period to secure a farm-in agreement for any future L10B drilling.

The Australian firm is the longest standing oil and gas explorer offshore Kenya and participated in originating the L6and the L8 projects.

According to Pancontinental, L10B has a number of large prospects and leads identified using 3D seismic and these are being examined as potential exploration drilling targets.

"Pancontinental also advises that it has notified BG Group, the London-listed FTSE-100 company which operates the licence, and the other joint venture participants, that it will increase its stake in L10B from 15 percent to 20 percent," the statement said.

Pancontinental said it will increase its stake prior to June 15, subject to the government's approval.

In L10A and L10B, the Joint Venture led by BG Group is interpreting 3D data in anticipation of identifying a number of prospects for drilling.

It said the extension of the exploration period by Kenya will give the joint venture partners more time to assess the impact of the Sunbird-1 discovery in the adjacent L10A area (PCL 18.75 percent) and its implications for possible future drilling in L10B.

Pancontinental has increased its stake in L10B by taking up its pro-rata share of the interest held by Premier Oil, which has decided to withdraw.

The changes in interests are subject to the approval of Kenya's ministry of energy and such approval is not expected to be withheld.

In April, the exploration company announced that oil, as well as gas, had been discovered in Sunbird-1 offshore Kenya.

The characteristics of the oil and gas discovery continue to be analyzed and will be announced when a complete and integrated analysis has been made available to the joint venture by the operator.

"The characteristics of the oil and gas discovery continue to be analyzed and will be announced when a complete and integrated analysis has been made available to the joint venture by the operator," it said.

Pancontinental believes that the significant prospectively of L10B and the opportunity to increase its interest with other partners in L10B at no cost, as well as the prospectively of adjacent area L10A, means it is well-placed to farm-out a portion of its interest in both licences on attractive terms and in a suitable time-frame under the 12-month extension.

The East African margin has become a focus of the global oil and gas exploration and production industry.

South of Kenya, offshore Tanzania and Mozambique, several major gas discoveries have been made by Anadarko Corporation, ENI, Statoil and BG.

The East African nation has a huge mineral potential but its exploration efforts have only picked in the last five years with the awarding of commercial licences in prospecting for oil, gold, coal, geothermal and rare earths.

http://www.shanghaidaily.com/article/article_xinhua.aspx?id=218998
 
Kenyan Oil Discovery to Generate Billions,
by: energytribune Posted date: May 20, 2014

From Energy Global

Kenya’s first commercial oil discovery is set to generate approximately US$ 10 billion, as a delay in its first licensing round attracts further foreign investment.

Despite growing global interest in Kenya’s oil and gas industry, its first competitive licensing round has been postponed to at least Q4 2014. However, this delay could serve as a long-term benefit for the country’s economy, as well as its oil and gas industry, says an analyst with research and consulting firm GlobalData.

Commercial oil discovery

John Sisa, GlobalData’s Lead Analyst covering Upstream Oil & Gas in the Sub-Saharan region, states that international interest in Kenya’s oil and gas sector has intensified over the last 20 months, following Tullow Oil (Tullow) and Africa Oil Corporation’s announcement of the country’s first commercial oil discovery in block 10BB/13T within the South Lokichar Basin.

According to GlobalData, block 10BB/13T alone could generate approximately US$ 10 billion in revenue over a 30-year production period, based on regional geological characteristics and well test results. This volume of cash flow alone will cause Kenya’s Gross Domestic Product, which is currently at US$ 40.7 billion, to grow at an average yearly rate of 0.83%.

Licensing round delay

Sisa says: “The delay in Kenya’s first licensing round could prove beneficial to the country’s economy, as International Oil Companies (IOCs) could make additional, commercial oil and gas discoveries before the end of the year. This would in turn strengthen prospectivity and interest in the country’s oil and gas industry.

http://www.energytribune.com/80418/...nerate-billions#sthash.kaieaLf2.IicV925f.dpbs
 
Pancontinental Oil and Gas targets ‘attractive’ farm-out in Kenya
Posted on 18 May 2014.

Pancontinental Oil and Gas (ASX: PCL) believes the prospectivity of the L10A and L10B oil and gas licences offshore Kenya will allow it to farm-out a portion of its interests on “attractive” terms.

It has a 18.75% stake in L10A and is increasing its interest in L10B to 20% from 15%.

The L10B joint venture has been granted a 12 month extension to the current initial exploration period to assess the impact of the Sunbird-1 discovery in the adjacent L10A area.

Sunbird-1 had intersected a 44 metre gross hydrocarbon column and analysis recovered gas and liquid samples is ongoing.

Following this, the joint venture can then elect to move into the First Additional Exploration Period of the licence.

L10B has a number of large prospects and leads identified using 3D seismic and these are being examined as potential exploration drilling targets.

Pancontinental has also advised L10B operator BG Group that is increasing its stake in the licence to 20% from 15% by taking up its pro-rata share of the interest held by Premier Oil, which has elected to withdraw.

http://oilinkenya.co.ke/pancontinental-oil-and-gas-targets-attractive-farm-out-in-kenya/
 
Press release
Welwitschia-1A Drilling Re-commences
04 Jun 2014

Tower Resources plc (the "Company" or "Tower" (TRP.L, TRP LN)), the AIM-listed Africa-focussed oil and gas exploration company, through its wholly-owned subsidiary, Neptune Petroleum (Namibia) Limited ("Neptune"), is pleased to announce that it has received notification from Repsol Exploration (Namibia) (Pty) Limited ("Repsol"), the Operator of Namibia PEL0010 (Neptune 30% working interest), that the drilling of Welwitschia-1A re-commenced on the morning of 4 June 2014.

http://www.towerresources.co.uk/news/2014/news_040614.html
 
Australian firm seeks Sh688m to explore oil in coastal Kenya
BY Macharia Kamau
Updated Thursday, June 5th 2014 at 09:45 GMT +3

Nairobi, Kenya: Australian oil explorer Far Limited plans to raise Sh688 million to undertake oil exploration works in coastal Kenya.

The firm said it seeks to raise $8 million through a private placement. Far Ltd, which is listed on the Australian Securities Exchange, is set to offload 200 million new ordinary shares to a selected group of investors.

The proceeds of the share issue, it pointed out, will be used to fund oil exploration in offshore Lamu.

“The placement is being undertaken to fund further exploration in offshore Kenya, potentially including accelerating the evaluation of the Miocene reef oil play offshore Kenya,” said Far Ltd in a statement.

It explained that it has a significant acreage position and for general working capital purposes. Managing Director Cath Norman explained that the money would enable the firm to go ahead with planned exploration works in its blocks off the Lamu coast, including drilling of exploratory wells.

She said the money would allow the company to move forward its key position in Kenya in the short term. “Building our portfolio of opportunities for our shareholders is key to our strategy and we aim to deliver a high impact drilling programme in Kenya following on from the current drilling programme in offshore Senegal,” Norman stated.

The company has been prospecting for oil in Kenya in what it says is a highly prospective region in Lamu. It has a 60 per cent ownership and is the operator of Block L6 – which is partially onshore – and has a 30 per cent stake in the offshore Block L9.

Farm-in agreement

The money that will be raised through the placement is in addition to Sh2.5 billion that Far Ltd and its partner in Block L6 Pancontinental Oil and Gas got in a farm-in agreement with Dubai-based Milio International.

The agreement will see Milio become the operator of the onshore portion of L6, with a 60 per cent stake while the two initial partners split the remaining 40 per cent.

The larger offshore bit will, however, still remain in the hands of Far Ltd (60 per cent) and Pancontinental (40 per cent).

While no major finds have been made in Lamu – both onshore and offshore – the firms that have been exploring the area note that it is a matter of time before this is realised

Far Ltd has in the past said seismic survey data shows Block L6 to have combined prospective resources of 3.7 billion barrels of oil or 10.2 trillion cubic feet of gas.

http://www.standardmedia.co.ke/busi...-seeks-sh688m-to-explore-oil-in-coastal-kenya
 
Posted Sunday, June 8, 2014
ZEDDY SAMBU

New Bill seeks to create oil and gas sector watchdog

An independent regulator to manage the oil and gas industry in Kenya could be set up by December.

An oil exploration vibrator at a site in Todonyang, Turkana County, doing seismic survey on June 18, 2013. An independent regulator to manage the oil and gas industry in Kenya could be set up by December.

An independent regulator to manage the oil and gas industry in Kenya could be set up by December.

A new Bill proposes that petroleum production will be managed under Energy Regulatory Authority.

Formation of the watchdog will be culmination of a review of the current Petroleum (Exploration & Production) Act in order to address emerging issues in exploitation of what policy makers say are commercial quantities of oil in Turkana County.

The ongoing review follows concerns by the government that latest developments in the sector have outpaced the existing law, giving oil explorers an upper hand in marketing of Kenya’s natural resources.

It has emerged that investors in the oil and gas industry have to wait for sound rules before committing funds.

Two amendment Bills to the Exploration and Production Act of 1986 and the Energy Act are being drafted and would be presented to Parliament by end of the third quarter this year. A working committee has converged in Mombasa to finalise on the Energy Bill and Upstream Bill as well as the energy policy ”” the anchor regulation for the industry.

“The new draft Bills are still at the preliminary stage. The final decision rests with the Cabinet Secretary,” said Mr Hudson Andambi, a ministry geologist and member of the technical team.
“We are moving quickly and hope to conclude by the third quarter,” he said.

“The idea is to draft two Bills and not the omnibus Energy Bill as initially planned. This is in an effort to incorporate stakeholders’ views,” said Frederick Nyang’, acting director-general at the Energy Regulatory Commission.

The oil and gas industry is presently governed by the Petroleum (Production and Exploration) Act but its provisions have been deemed insufficient.

At the moment, the National Oil Corporation of Kenya is the legal investment arm in the oil and gas business on behalf of the government, while the National Fossil Fuels Advisory Committee advises the government on contracts with investors while the licensing role lies with the Energy minister.

The current Energy Act 2006 over concentrated on electricity necessitating the review.

The law review team has modelled on the experiences of Indonesia, Brazil, Norway, US, India, Malaysia, India, Australia Philippines and South Korea.

http://mobile.nation.co.ke/business...2341476/-/format/xhtml/-/5usaqlz/-/index.html
 
Hope as Lamu well shows traces of oil and gas
Posted on June 9, 2014 by Zadock Malika

Kenya is reviewing the results of the Sunbird 1 well drilled by BG Group of London in an offshore block in the Lamu basin. A column of approximately 44m of crude oil and natural gas (hydrocarbons) was encountered by BG, state owned PTTEP of Thailand and Pancontinental Oil & Gas of Australia in the Sunbird 1 well in block L10 A.

“BG Group and its joint venture partners in consultation with my ministry are carrying out further analysis on the Sunbird 1 well results to inform next cause of action,” said Energy Cabinet Secretary Mr Davis Chirchir.

He said Africa Oil and Marathon Oil Corporation are drilling Sala-1 well in block 9 in northern Kenya where China National Offshore Oil Corporation in 2010 found natural gas but not in commercial quantities. Metro 1 rig finished drilling Sunbird in March this year after work started in January about 50km from Mombasa. Sunbird is the second offshore discovery as gas has been found in Mbawa 1 well in block L8 in 2012.

Sunbird 1 well has been sealed to prevent leakage of hydrocarbons to the sea floor. BG owns 50% of L10 A while PTTEP has 31.25% share and Pancontinental 18.75%. Pancontinental said samples of gas with liquids obtained from Sunbird1 well are currently being assessed and the joint venture partners are considering follow-up exploration activities of acreage L10 A in Lamu basin. “Sunbird results highlight the strong potential of Pancontinental’s extensive offshore Kenyan acreage,” said Mr Barry Rushworth, the Chief Executive Officer of Pancontinental which has interests in block L 6, L8, L9 and L10 B.

Out of 15 wells drilled since March 2012, seven encountered oil in Tullow’s acreage 10BB and 13 T in north western Kenya. Apache Corporation discovered natural gas in Mbawa 1 well in offshore area L 8. Over 10 wells are set to be drilled in Kenya by first quarter next year. Afren Plc has identified70 square kilometres Khorof prospect after acquiring two (2) dimension seismic data for oil and gas in onshore block 1in Mandera basin. “The company will carry out further 2 D seismic survey to increase confidence of drilling next year. In offshore acreage L 17 and L18, Afren has completed 3D seismic programme and identified Mombasa High and Wasini prospect,” said Mr Chirchir.

http://nairobibusinessmonthly.com/hope-lamu-well-shows-traces-oil-gas/
 
Kenya upbeat on ocean deal with Somalia
Business daily,Posted on June 9, 2014 by Warsame

Kenya is optimistic of reaching a deal with Somalia over the exploration of resources around a disputed section of their shared Indian Ocean off-shore border territory.

In its preliminary prospectus for the planned Sh132 billion Eurobond, the government said the two countries were in discussions to amicably resolve the matter.

“Kenya and Somalia are in discussion with regards to their respective submissions to the UN Commission on the Limits Continental Shelf,” the document said in part.

Kenya and Somalia signed a memorandum of understanding in 2009 that the border would run east along the line of latitude, but Somalia, which has lacked an effective central government since 1991, then rejected the agreement in parliament..

In 2012, the Somali government accused Kenya of awarding offshore oil and gas exploration blocks illegally to multinationals Total and Eni, claiming that the concessions lie in waters claimed by Somalia.

Kenya denied the accusation that ownership of the blocks was contested and said there was no need to hold up exploration. Both countries have since submitted separate submissions to the UN agency seeking to claim additional territory on the shared Indian Ocean border

According to the UN Convention on the Law of the Sea, all countries that border the ocean are allowed to use the 200 nautical miles into the ocean for exclusive economic purposes without interference from other countries..

Kenya formally laid claim to an additional 103,320 square kilometres of seabed off its coastline, beating an April 13, 2013 deadline that was set for the submissions.

Failure to beat the deadline would have left all exploration and exploitation rights over the territory in the hands of the International Seabed Authority (ISA).

Failure to secure such rights would also mean that firms eyeing investments in such zones would have to go through strenuous and expensive processes to secure permission from the ISA.

Kenya and Somalia habour ambitions of striking oil and gas off-shore and analysts say they would immensely benefit from privileged provisions of the UN convention.

The provisions exempt developing countries that are net importers of a mineral resources produced from its continental shelf from financing the exploration of non-living resources beyond the 200 nautical mile limit

Kenya and Somalia are net importers of oil and gas and qualify for the exemption. Kenya is also in talks with Tanzania over the demarcation of their shared Indian Ocean territory as the scramble for off-shore resources intensifies.</spanTanzania made a late claim in 2012 for its share of the Indian Ocean territory, delaying the commencement of proceeding to decide the demarcation of the extra seabed claimed by Kenya and Somalia.

Kenya, by virtue of sharing a common border with Tanzania, had to wait for Tanzania’s final submission to get the UN’s verdict on its application.

Sea law experts say the UN Commission on the Limit of Continental Shelf – the arbiter in the fresh scramble for sea wealth – must receive all applications from neighbouring states to demarcate the new borders

http://www.mareeg.com/kenya-upbeat-on-ocean-deal-with-somalia-business-daily/
 
Tower Resources Fails To Find Hydrocarbons At Welwitschia-1A, Namibia
06/13/2014

Tower Resources PLC's shares slumped on Friday after saying it has failed to find hydrocarbons in early targets at the Welwitschia-1A well on the PEL0010 licence, offshore Namibia, and has had to stop drilling deeper at the well due to spiralling costs.

Tower Resources shares were down 64% to 1.05 pence, making it the worst AIM ALL-Share faller during early trading on Friday.

The company has a 30% working interest on the site while Repsol Exploration Ltd is the operator and owns 44% of the site.

The AIM-listed Africa-focussed oil and gas exploration company said the well reached its total depth of 2,454 metres and logging evaluations have shown that the Palaeocene, Maastrichtian and upper Campanian section reservoirs were less well-developed than expected, and no hydrocarbons were encountered at the site.

The company said that due to late rig-delivery and operational issues during drilling and logging, including the onset of winter weather conditions, Repsol's current expectations are that costs will now be around 10% higher than the previously expected USD91 million gross well budget.

Tower Resources said that the estimated cost of the company continuing to drill the well to test deeper, large potential targets, now appears to be as much as a further USD40 million gross.

The company and its partners on the site have now agreed not to drill the site further and are currently evaluating the information and its implications for the block as a whole. The Welwitschia-1A well is being plugged and abandoned.

"The well emphasises the risk of exploration and the wisdom of having moved to diversify our portfolio," Chief Executive Graeme Thompson said in a statement. "We expect much activity in the coming months on and in the areas surrounding our assets.

http://www.4-traders.com/TOWER-RESO...rocarbons-At-Welwitschia-1A-Namibia-18586931/
 
BG’s discovery of 9.2 metre net oil pay in Kenya

sunbird.jpg

By Sa’ad Bashir, in Dar es Salaam
June 19, 2014

BG’s discovery of 9.2 metre net oil pay in Kenya’s deepwater Lamu Basin is clearly understandable from the point of view of plate tectonics, in the opinion of Africa’s leading exploration thinker.

“There has been production from the Bombay High which was India’s primary oil producing region before new discoveries of (predominantly gas) in the east Indian offshore”, recalls Ebi Omatsola, former Chief Geologist at Shell and Managing Director of Conoil, the Nigerian independent. “The western part of India was derived from Gondwana during late Jurassic separation of the Indian subcontinent from Gondwana. Sedimentary sequences since some 150 Million years should be sufficient to create an active petroliferous oil pool”, he explains

BG plugged and abandoned the frontier wildcat probe in April 2014 and went ahead to match the gas and liquid samples with wireline data and pressure readings. On June 17, 2014, Pancontinental, an 18.75% equity partner on the property came out with the result.

After an evaluation process lasting close to three months, the wildcat Sunbird-1 in Block L10 was declared as intersecting “a gross 29.6metre gas column overlying a gross 14metre oil column in the Sunbird Reef”. BG operates the Block L10A petroleum-sharing contract with a 50% interest. PTTEP holds a 31.25% interest. “The corresponding net values are 9.2metres for the oil zone and 28.3 metres for the gas zone”, Pancontinental explains. “The net values are calculated for the reservoir using cut-offs of 10% porosity (Phi) and 50% shale volume (Vsh). Oil and gas samples have been recovered and analysed using sophisticated geochemical techniques.The Sunbird Reef is an ancient Miocene pinnacle reef buried beneath approximately 900m of younger sediment”.

Omatsola argues that “the Morondava Basin of SW Madagascar has discoveries of oil even though it is heavy oil due to several tectonic events with concomitant removal of the lighter fractions of the oil etc; whilst the corresponding Gondwana mirror image is the south west offshore Indian Ocean Lamu Basin”.

Lackluster exploration results in Kenya’s deepwater Lamu basin in the last ten years have included Woodside’s Pomboo-1 (2007), long after TOTAL’s luckless Simba-1(1978), which came up with minor oil and gas shows. In September 2012, Apache Corp., America’s third-largest independent oil and natural-gas producer, plugged Mbawa-1 with 52 meters of gas. “We were drilling for oil,” said Tom Giblom, the company’s country manager in Kenya. For all this however the truth is that offshore Kenya has not been comprehensively explored.

The Sunbird discovery itself is considered unlikely to be commercial going by its estimated size, but it is the first encounter of oil column of some appreciable footage, in this basin. “The Sunbird-1 oil is the historic first-ever oil discovery offshore Kenya,” gushes Barry Rushworth, Pancontinental’s Chief Executive Officer ‘It is the only offshore oil column ever reported seaward of the eastern coastal margin of the African continent, from South Africa to the northwest tip of Somalia. We believe that this is a play-opening discovery in Kenya’s Lamu Basin. Because of the Sunbird discovery we expect to see a significant increase in industry interest offshore Kenya. We encountered a thick and effective seal over the top of the reef, which was an initial risk for us, and the regional follow-on implications of this are truly significant. Porosity, permeability and seal for the reservoir were all better than Pancontinental expected’.

http://africaoilgasreport.com/2014/...-kenyan-discovery-is-not-surprising-omatsola/
 
Kenya loses out on oil and gas riches
By KENNEDY SENELWA Special Correspondent
Posted Saturday, June 21 2014 at 15:22

Kenya is losing out on millions of dollars in investments as areas designated for prospecting for oil and gas remain unexplored.

The vacant lots are offshore L25, L26, L15, L8 and onshore 10A.

Oil and gas prospecting rights for these areas cannot be awarded until a new regulatory framework has been finalised. Edgo Energy, Ophir Energy Plc, Apache Corporation and Tullow Oil Plc in 2013 surrendered block L26, L15, L8 and 10A, respectively.

Kenya’s Ministry of Energy said crude oil and natural gas prospecting rights will be awarded to firms interested in undertaking exploration after the Petroleum Bill is debated by parliament and new legislation is enacted.

Collapsed talks

Negotiations between the ministry and Statoil for deep offshore area L25 collapsed in 2012. Kenya wanted at least $11.7 million spent in three years on various activities, but the Norwegian firm asked for a downward review of the terms.

Statoil would have paid $300,000 as a one-off payment as signature bonus, surface fees of $5 per square kilometre, training fees of $175,000, and spent $50,000 on community development projects.

Oil and Energy Services Ltd said Kenya will benefit if competitive licensing is implemented.

“Proposed licensing rounds will give the true value of acreage as Kenya will select the company that submits the highest bid and offers the best deal,” said the consulting firm’s chief executive, Mwendia Nyagah.

http://www.theeastafrican.co.ke/bus...riches-/-/2560/2357030/-/j2wln5z/-/index.html
 
Australian firm concludes oil exploration
20 June 2014, 15:52

Simba Energy, the Australian company conducting oil exploration in Northern Kenya, has announced that it has completed the flight programme portion of the survey at Block 2A.

Simba, which holds 100 percent of Block 2A, announced that the FTG (full Tencor Fradiometry) survey’s preliminary data had identified 11 high ranking and sizeable anomalies in the portions of the Mandera (5) and Anza (6) basins lying within Simba's concession and that the survey has enabled it to better target and reduce the area of exploration.

The company said that final results of interpretations of the survey were expected before the end of July.

Simba Energy’s Chief Executive Officer, Robert Dinning, said with the FTG, they were now able to better the target and reduce the area that would otherwise need to be covered by the 2D seismic program being planned as part of the selection process to locate the first test well sites on Block 2A.

“The final FTG results in Block 2A will lend support to our discussions with potential farm-in partners,” stated Dinning.

Bell Geospace is the company contracted by Simba Energy to conduct the FTG survey.

Dr Colm Murphy, a Senior Geoscientist with Bell Geospace, said that over the past few years, Bell Geospace’s patented technology had proven to be an invaluable tool at a number of recent discoveries in East Africa.

“Backed with these data sets and others within the region, our FTG survey at Simba's Block 2A has yielded a number of very encouraging and high ranking targets that compare favourably with those of recent discoveries,” said Murphy.

– CAJ News

http://www.news24.co.ke/Business/News/Australian-firm-concludes-oil-exploration-20140620
 
Investors are rushing to acquire shares in Kenya’s oil exploration
By KENNEDY SENELWA Special Correspondent
Posted Saturday, July 12 2014 at 09:20

Investors are rushing to acquire shares in Kenya’s oil exploration areas from small companies following recent hydrocarbon discoveries headlined by Tullow Oil’s success.

Junior prospectors under pressure to fund well drilling and other activities are increasingly being tempted by offers from better endowed rivals, sparking a wave of acquisitions worth $250 million in a region previously considered a backwater of exploration.

Nairobi-based Hydrocarbons Management Consultants said the smaller explorers were being targeted by firms seeking to reposition themselves in Kenya’s upstream oil segment.

“They have to sell part of their exploration rights to raise funds for expediting compliance with work programmes agreed on with Ministry of Energy,” said Hydrocarbons lead consultant Robert Shisoka. Kenya’s status as a destination for investment has been raised by discovery of oil and gas in various wells.

Swala Energy has completed farm out (partial sale) of a 25 per cent interest in block 12B in western Kenya to Compañía Española de Petróleos (Cepsa) of Spain.

The sale followed approval by the Competition Authority of Kenya and left Swala with 25 per cent of the shares and Tullow Oil with a 50 per cent stake. Cepsa committed to drill two wells at a cost of up to $15 million.

Swala’s chief executive officer David Mestres Ridge said the farm-in agreement would enable the Australian firm to grow its portfolio.

Cepsa had in February this year acquired a 55 per cent stake in block 11A in northwestern Kenya where ERHC Energy of the US (35 per cent) and National Oil Corporation of Kenya (10 per cent) are the other partners.

Imara Energy Corporation, Rift Energy Corporation and FAR Ltd are among companies seeking a new partners or raising money to fund exploration and avoid their acreage being repossessed by the Ministry of Energy.

Imara Energy of Canada is offering a convertible debenture ”” priority debt that can be swapped for shares ”” of up to $15 million. The proceeds will be used for exploration of block L2 in the Lamu Basin, which requires $7.9 million this year and in Morocco.

The debenture will be converted into Imara Energy shares that can be traded at the United Kingdom main board standard listed Pubco.

Rift Energy wants to sell part of its equity in onshore area L19 near Mombasa while FAR Ltd and Pancontinental Oil and Gas are seeking a partner in drilling a well in the L6 offshore block.

The well is expected to cost FAR and Pancontinental, both listed on Australia Stock Exchange, about $80 million.

Privately owned Rift Energy of Canada, which owns Block L19, is obliged by a 2012 agreement with the government to spend $5 million on acquisition of seismic data by the end of this year. In March, it started carrying out two dimensional (2D) seismic survey covering 680 kilometres to map hydrocarbon deposits in the area.

Rift Energy vice president of operations Tom Guidish said the data derived from the three month exercise would help build an inventory of prospects for drilling.

It would then be required to spend $20 million on the block for every two years that the licence is renewed.

He said in a brochure issued to potential investors that the block’s proximity to the Mombasa port provided a ready outlet for any oil and gas discovered, lowering the economic threshold for success.

FAR and Pancontinental want to sell part of their interest in L6 before drilling of a well next year. FAR’s executive director and commercial manager Ben Clube said the target partner should be willing to contribute equity, share past expenses of $21 million and fund well drilling.

The area has features similar to block L10A where BG Group and Pancontinental discovered oil and gas in Sunbird well this year.

In February, Milio International Ltd of Dubai acquired 60 per cent of the onshore part of area L6 after agreeing to spend up to $30 million on future exploration work.

FAR retained a 24 per cent stake in the acreage leaving Pancontinental and its wholly owned subsidiary, Afrex, with a combined 16 per cent interest.

http://www.theeastafrican.co.ke/bus.../2560/2381338/-/item/0/-/lbm19cz/-/index.html
 
Tullow Oil To Farm Into Eco Atlantic's Cooper Block, Offshore Namibia, Resulting In A Full Carry On Enlarged 3D Seismic Program And Exploration Well

Toronto – July 17, 2014 – Eco (Atlantic) Oil & Gas Ltd. (“Eco Atlantic” or the “Company”) (TSX-V:EOG, NSX:EOG) is pleased to announce that it has executed a Farm-out agreement (the “Agreement”) with Tullow Kudu Limited, a wholly owned subsidiary of Tullow Oil plc. (“Tullow”), pursuant to which Tullow has agreed to acquire up to a 40% working interest in Block 2012A, situated in the Walvis Basin, offshore Namibia (the “Cooper Block” or the “Block”). This Farm-In, in conjunction with Eco Atlantic’s prior Farm-Out to Azimuth for 20%, nets the Company a 100% carry of all costs on an expanded 1,000 km² 3D seismic survey and interpretation (the “Seismic Program”). The Seismic Program is expected to commence the fourth quarter of 2014. Dependent on the establishment of a target from the Seismic Program, Tullow has also committed to a full carry of cost to drill an exploration well on the Block.

Pursuant to the Agreement, the Company will initially transfer a 25% working interest in the Cooper Block to Tullow in return for a carry of the Company’s share of costs to execute and process the Seismic Program, and the reimbursement of 25% of the Company’s past costs in an amount to Eco Atlantic of approximately US$1 million (the “First Transfer”). Following the First Transfer, if Tullow elects to participate in the drilling of an exploration well on the Cooper Block, Tullow will be transferred an additional 15% working interest in the Block, in return for a full carry of the Company’s share of costs to drill an exploration well on the Block (capped at $53 million) and the reimbursement of an additional 15% of the past costs (the “Second Transfer”). Eco Atlantic will remain Operator until the Second Transfer, at which time, Tullow will be appointed as Operator of the Cooper Block.

The completion of the First Transfer and the Second Transfer are subject to a number of conditions, including the approval of Namibia’s Ministry of Mines and Energy and various approvals of the other Block participants. AziNam Limited, an existing Block 2012A partner with 20% working interest, has given their approval to the transaction and expanded work program.

Dundee Securities Europe LLP acted as financial advisor in relation to the Agreement.

Eco Atlantic currently holds a 70% working interest in the Cooper Block, AziNam Limited holds a 20% working interest, and NAMCOR, the Namibian national oil company, holds a 10% working interest. Following the First Transfer, the Company will hold a 45% working interest in the Cooper Block, Tullow will hold a 25% working interest, and AziNam and NAMCOR will retain their respective working interests.

Gil Holzman, President and CEO of Eco Atlantic, stated: “We are extremely happy to complete this farm-out deal with one of Africa's preeminent and successful oil and gas explorers – Tullow Oil. This provides the requisite financing to progress activities on the Cooper Block, and further validates our exploration work and findings to date. Our strategy is one of identifying, acquiring and derisking our prospective acreage while attracting world class partners to progress the exploration process. We are delighted to welcome Tullow to partner with us on this block, and to join our other partners - AziNam and NAMCOR. Now that Cooper’s exploration is funded, we will continue to review further partnerships across our portfolio. We also wish to thank our Block partner AziNam for their positive support of the process as well as to our financial advisors, Dundee Securities.

Colin Kinley, COO and Director of Eco Atlantic comments: “Eco has taken a very strategic approach to the exploration of its Namibian assets; each well drilled in this frontier basin has helped to further define our targets. Our approach, specifically to the Walvis Basin is simple. The mechanics are all there and the region is generating oil and gas, we know that for a fact. The Cooper Block has been analyzed closely by multiple parties – all resulting in acute interest. Attracting Tullow, who is one of Africa’s most successful explorers as a partner, who now has well over 100,000 barrels a day under its belt, is exciting for us. We have a highly credible team of upstream industry experts already within our own members and partners in AziNam and NAMCOR, and now we are bringing fresh eyes into the block who have the unique interpretation strength to find oil, drill wells and bring it on line quickly and economically.”

About Tullow

Tullow is a leading independent oil & gas, exploration and production group, quoted on the London, Irish and Ghanaian stock exchanges (symbol: TLW) and is a constituent of the FTSE 100 Index. The Group has interests in over 140 exploration and production licenses across 24 countries which are managed as three regional business units: West & North Africa, South & East Africa and Europe, South America and Asia.

About Eco Atlantic

Eco Atlantic is an oil and gas exploration company focused on the new and bourgeoning energy play in Namibia. Through a wholly owned Namibian subsidiary (“Eco Namibia”), it holds four petroleum licenses issued by the Government of the Republic of Namibia. Offshore in the Walvis Basin, Eco Atlantic holds three license blocks covering more than 25,000 square kilometers (6,177,000 acres). Eco Atlantic holds an additional license block covering 23,000 square kilometers (5,683,000 acres) which includes both onshore and offshore areas. Founded in 2008, Eco Namibia enjoys a strong local presence and has a longstanding relationship with the energy and oil and gas sector in Namibia and the region. The terms and conditions of these licenses are regulated by agreements signed by Eco Namibia with the Government of the Republic of Namibia in March 2011, as amended.

http://www.ecooilandgas.com/news/index.php?&content_id=80

Here's a quick picture of the location of the ECO/Tullow block relative to the PCL/Tullow blocks.....

ECO TULLOW Blocks.jpg
 
I would like to express my sympathy to Mr Maslin (Independent Non-Executive Director – PCL) and his family at this very tragic time.

The Oil & Gas community across Australia has been truly saddened by your loss and that of all the families, friends and loved ones of victims affected by the MH17 tragedy.
 
Namibia EL 0037 Exploration Update

Early interpretation of Seismic yields Major Offshore Prospects;

3D – based mapping under way
Early mapping identifies major prospects in EL 0037, offshore Namibia. New 3D & 2D data are being used to confirm early mapping. The Albatross Prospect has potential to contain 422 Million Barrels of Oil (gross unrisked mean) or 1.093 Billion Barrels of Oil (P10), from initial mapping (See cautionary Statement Below)
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Further prospects and leads have gross mean risked potential resources exceeding 150 Million Barrels of Oil (See Cautionary Statement Below) EL 0037 contains a number of major turbidite fans prospects up to 300 sq km in area
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Oil system in “fairway” verified by Wingat-1, on-trend to EL 0037;

Prospects are close to mature oil source rocks in “fairway”

Final 3D mapping September-October 2014 expected to present a number of potential drilling targets Pancontinental Oil and Gas NL (ASX: PCL) is pleased to advise that the 3D and 2D seismic surveys carried out earlier in 2014 in EL 0037 offshore Namibia are starting to yield very encouraging results.

Initial Assessment of Seismic Data

Initial mapping has confirmed at least four main prospects in the 3D area - the Albatross, Gannett, Petrel and Seagull Prospects. The Prospects appear to be large and robust (up to 300 sq km in area) and are in favourable geological settings. Additional prospects and leads are expected to be mapped within and outside the 3D area in due course.

Cautionary Statement:

The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation is required to determine the existence of a significant quantity of potentially movable hydrocarbons.

see attached for more details;

View attachment 684713_PCL.pdf
 
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