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Swala Energy has announced it will be drilling its first exploratory well in Kenya\u2019s block 12B in 2015.<\/p>\n
The company says the decision follows positive data from the 2D seismic acquired in the block that was completed in the month of June covering 350 kilometers.<\/p>\n
Under the terms of the production sharing contract the joint venture that has Swala and the block operator Tullow oil has an option to acquire 300km2 of 3D seismic or drill an exploratory well during years 3 and 4.<\/p>\n
\u201cThe recent seismic results have provided the technical comfort to both Tullow and Swala to make an informed decision to proceed into Years 3 and 4 of the PSC and we are excited at the prospect of drilling the first exploratory well in this frontier basin,\u201d says Swala\u2019s CEO Dr. David Mestres Ridge.<\/p>\n
Meanwhile the third joint venture who completed the farm-in on the 10th of March Compa\u00f1\u00eda Espa\u00f1ola de Petr\u00f3leos \u00a0(CEPSA) has withdrawn from the PSC after it was uncomfortable with the scheduled drilling by Swala Energy.<\/p>\n
According to Swala Energy CEPSA had prefered more time to review the 2D seismic data come to a decision on whether to drill or drop.<\/p>\n
Under the PSC the spanish explorer had committed to carrying Swala\u2019s seismic costs up to a maximum of $2.6 million as well as carry through the first exploration well should they have elected to enter this first additional exploration period of the PSC.<\/p>\n
Swala\u2019s CEO says that the parties are working on coming to a mutually beneficial agreement to ensure the withdrawal of CEPSA has minimal effect.<\/p>\n
\u201cWe do however regret that CEPSA has felt it necessary to withdrawal from the license after such a short period of time as a joint participant. All parties are working together to reduce the impact of this premature withdrawal constructively and we are confident that this will lead to a satisfactory outcome to the matter,\u201d said Mestres.<\/p>\n
Prior to the withdrawal of CEPSA had a 25% net working interest similar to that by Swala Energy while Tullow Oil holds the remaining 50% net working interest.<\/p>\n
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