Africa Oil has withdrawn from Block 12A according to its fourth quarter financial and full year financial and operating results and written off $2.0 million in intangible exploration assets relating to the block.
The Block which is operated by Tullow Oil was the focus in Q1 2016 during the drilling of the Cheptuket well which according to the operator encountered good oil shows, seen in cuttings and rotary sidewall cores, across a large interval of over 700 metres.
The joint venture partners added that analysis of the well indicated the the presence of an active petroleum system with significant oil generation and represents the most significant well result to date in Kenya outside the South Lokichar basin and is thus not clear why the Canadian explorer has chosen to withdraw.
Financial results by Africa Oil further indicate that the company incurred $46.6 million of intangible exploration expenditures in Kenya for the year ended December 31, 2016 which include drilling and completion expenditures primarily relate to the Cheptuket-1 exploration well in Block 12A, the water injection testing performed on the Amosing-3 appraisal well in Block 10BB, the drilling of Erut-1 in Block 13T, as well as costs associated with demobilizing and remobilizing the PR Marriott 46 Rig and associated services.
Tullow Oil has 40 percent net working interest in the block, Delonex 40 percent and Africa Oil had 20 percent.