Badada-1 well likely to delay as court injunction halts operations in Kenya’s Block 2B

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Taipan Resources  has announced that the Company’s wholly-owned Kenya-based subsidiary, Lion Petroleum Inc. has received a formal notice from the High Court of Kenya of a temporary injunction preventing the Company from working on the Badada-1 well site in Block 2B, north east Kenya.

Adjoined to Lion in the lawsuit as co-respondents are the Kenyan Cabinet Secretary, Ministry of Petroleum, the Honorable Attorney General of Kenya, the Chairperson of the National Land Corporation and Premier Oil plc.

The injunction follows a temporary injunction obtained under a certificate of urgency by the Ajuran pastoralist community living in Wajir County who say they will be alienated from their grazing land which might further lead to clashes due to limited land.

On the environmental side the community says that oil exploration activities have already destroyed the area’s ecosystem through alleged oil spills that have killed nearby vegetation and pose a health risk to the residents.

The community is also protesting the lack of provision of benefits accruing from the Badada well and Quoft blocks by both the government and oil companies.

Taipan on its part has said it has cleared just 200 meters squared from where it will base its activities including drilling storing of equipment and housing of its staff.

The ruling means that all parties maintain the status quo remains until the case is determined.

Based on legal advice received the Block 2B partners say they are confident that the injunction will be revoked such that the Company can progress to its projected spud of the Badada-1 well in early January 2015.

Taipan Resources has 30 percent working interest on the block while Premier Oil holds 55 percent and Tower Resources 15 percent.

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