Houston based explorer ERHC has said it is working on securing the requisite drilling rig for its first well in Block 11A even as it continues with studies to determine the location for drilling.
Already the company that is currently serving its first additional phase of exploration team is calculating volumetrics following the completion of 2D seismic mapping for identified prospects and leads in the Block, which will help determine the location of the first well.
In November last year the company announced that ongoing interpretation of 2D seismic data on Kenya Block 11A had revealed the presence of several viable leads, some with closures of up to 20 square kilometers.
Also ongoing is an ongoing Environmental Impact Assessment for the drilling location and developing the well design
“The work program is underway with long lead items for well operations already tendered,” ERHC president and chief executive officer Dr. Peter Ntephe.
Drilling of the first exploration well is expected during the first quarter of 2016, if all conditions precedent are met.
ERHC currently holds a carried 35 percent interest in Block 11A, which is operated by CEPSA with a 55 percent interest.
ERHC adds it is also working on a farm-down as the explorer woks on selling stakes in its acreage in order to spread risk and exploration and development cost with Deloitte Corporate Finance LLC working as the strategic advisor.
On surviving the low oil price the explorer says it is working hard to attract new strategic investors who can bring not just significant new funding but also new synergies to revitalize the Company’s business plan.
”We believe that current market conditions provide a unique opportunity for a savvy investor interested in African exploration, and oil and gas generally, to acquire a significant stake in ERHC for a price that would have been a bargain just a few months ago,” the statement concludes.
ERHC holds a 35 percent interest in Block 11A after farming out a 55 percent stake to CEPSA. The Block is situated in northwest Kenya, northwest of the significant Ekales-1, Agete-1, Etuko-1, Ngamia-1 and Twiga South-1 oil discoveries in Blocks 11B and 13T.
In addition to Kenya Block 11A, ERHC’s oil and gas exploration interests extend across the African continent, including the São Tomé and Príncipe Exclusive Economic Zone (EEZ), the Republic of Chad and the Nigeria- São Tomé and Príncipe Joint Development Zone (JDZ).