Future drilling in Kenya’s block 2B unlikely without a farm-out

Following the disappointment at the Badada-1 well in Block 2B in February the joint venture partners led by Tower Resources who says it expects no significant expenditure in 2015 with any extra drilling likely to require a farm-out.

Tower Resources says it has already met all the financial commitments having paid $3 million of the on the budgeted US$25.8 million gross well cost. The partners also made small net savings of $3.8 million with the well having taken a total of 51 days to drill compared to the Operators initial estimate of 70 days.

The Operator, Lion Petroleum a subsidiary of Taipan Resources is in discussions with the Kenyan Ministry of Energy as how best to complete its evaluation of the remaining prospectivity of Block-2B.

Analysis are to be performed on samples and data obtained with Tower saying  information obtained will enable the partners to make better predictions of seal and source for any future drilling, thus reducing prospect specific risks

Badada-1 was the first well to target Tertiary rather than Cretaceous age source and reservoirs within the Anza Basin.

Meanwhile a hearing on a suit against objections to the drilling of badada-1 well is expected back in Kenyan courts soon in a case that has Taipan Resources Inc., Premier Oil plc, the County Government of Wajir, the Ministry of Energy and Petroleum, the Attorney General and the National Land Commission also enjoined.

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