The Company incurred (Kshs2.25 billion) $22.5 million of intangible exploration expenditures in Kenya for the six months ended June 30, 2016 according to the latest half year results by the company.
Drilling and completion expenditures primarily relate to the Cheptuket-1 exploration well in Block 12A and costs associated with demobilizing the PR Marriott 46 Rig and associated services cost 1.04 billion shillings.
Another 460 million shillings was used in development studies, while exploration surveys and studies consumed another 270 million shillings. PSA and G&A related cost 473 million shillings.
These costs are however a fraction of expenditures during the same time in 2015 when total expenditures were 14.6 billion shillings broken down into 10.85 billion shillings in drilling and completion expenditures, Kshs 1.96 billion in development studies and 665 million in exploration surveys and studies.
Going forward drilling costs continue to be incurred in association with development planning and preparation for the upcoming drilling program as well as development study expenditures are associated with studies aimed at progressing towards project sanction for the South Lokichar Basin.
Exploration studies costs continue to be incurred in Kenya as the joint venture (Tullow Oil, Maersk Oil and Gas, Africa Oil) is preparing an exploration and appraisal drilling campaign which will commence later this year.
In Ethiopia the Company incurred 800 million shillings of intangible exploration expenditures for the six months ended June 30, 2016, which consists of license fees and general and administrative costs.
$1 equals to Kshs 100