{"id":5426,"date":"2016-11-24T08:45:19","date_gmt":"2016-11-24T08:45:19","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=5426"},"modified":"2017-01-24T13:30:37","modified_gmt":"2017-01-24T13:30:37","slug":"kenyas-block-11b-loss-cost-bowleven-11-8-million-in-2016","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/kenyas-block-11b-loss-cost-bowleven-11-8-million-in-2016\/","title":{"rendered":"Kenya\u2019s Block 11B Loss Cost Bowleven $11.8 million in 2016"},"content":{"rendered":"

Bowleven has reported that the loss of its Kenyan acreage operated by Adamantine Energy resulted in unsuccessful exploration costs of $11.8 million being charged to the Income Statement in the current financial year.<\/p>\n

According to Bowleven the costs are significally low as a majority of expenditure on block 11B was funded via an arrangement with First Oil following a strategic partnership in 2013 with the latter committing to fund a portion of future expenditure in Kenya, including $9 million of the first $10 million of Bowleven\u2019s obligations under the first exploration phase, in return for a 30% holding in Bowleven (Kenya) Limited which held the 50% equity interest in block 11B.<\/p>\n

The company shifts the blame as to why the joint venture did not honor obligations under the first exploration phase imputing that local community logistical issues and security concerns meant this seismic acquisition<\/a> could not be carried out even after the Ministry of Energy and petroleum granted a further nine-month extension<\/a> to the initial exploration phase (to 26 May 2016).<\/p>\n

\u201cHaving fulfilled the financial obligations for the initial phase of the PSC and following a strategic review, it was considered that such acreage in frontier areas should no longer be a priority for the business and consequently the licence was allowed to lapse at the end of the initial exploration phase,\u201d says Bowleven\u2019s Chief Executive Officer Kevin Hart.<\/p>\n

There is no mention as to how a legal dispute between the joint venture partners at the English High Court affected its ability honor obligations under the first exploration phase and the additional period although indications are that internal wrangling led to the government\u2019s decision not to extend<\/a> the license.<\/p>\n

The English High Court in the case of\u00a0Adamantine Energy (Kenya) Limited v Bowleven (Kenya) Limited\u00a0[2016] EWHC 130 (Comm) ruled that what happened on 25 February 2015 was not a valid \u2018drill or drop\u2019 vote under the SPA, and that Bowleven therefore did not have to transfer its interests under the PSC.<\/p>\n

Speaking to OilNews in September the commissioner for petroleum Martin Heya<\/a> without elaborating why said the license is now vacant after\u00a0expiring<\/a>\u00a0in June 2016 and would be up for auction once the country advertises all unoccupied blocks.<\/p>\n

Block 11B covers an area of approximately 14,200 square kilometres covering the Loeli, Lotikipi, Gatome and South Gatome basins. The basins are to the north of the Lokichar Basin\u00a0where a significant oil discovery was\u00a0made in 2012 at\u00a0the Ngamia-1 well.<\/p>\n

Analysis of the existing gravity and magnetics<\/a> and seismic datasets suggest the basins in block 11B are of similar form to Lokichar and analogous geological plays and petroleum system elements are expected.<\/p>\n","protected":false},"excerpt":{"rendered":"

Bowleven has reported that the loss of its Kenyan acreage operated by Adamantine Energy resulted in unsuccessful exploration costs of $11.8 million being charged to the Income Statement in the … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":1159,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[8,11],"tags":[53,5563,263,5092,896,970,1252,1439,1444,1456,3143,4549],"class_list":["post-5426","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oil-products","category-top-news","tag-adamantine-energy","tag-basins","tag-block-11b","tag-commissioner-for-petroleum","tag-first-oil","tag-gatome","tag-kenya","tag-loeli","tag-lokichar","tag-lotikipi","tag-martin-heya","tag-south-gatome","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/06\/block-11b.png?fit=495%2C523&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-1pw","jetpack-related-posts":[{"id":5119,"url":"https:\/\/www.oilnewskenya.com\/index.php\/adamantine-energy-bowleven-lose-kenyas-block-11b\/","url_meta":{"origin":5426,"position":0},"title":"Adamantine Energy, Bowleven Lose Kenya\u2019s Block 11B","author":"","date":"September 1, 2016","format":false,"excerpt":"Kenya\u2019s Block 11B operator Adamantine Energy and joint venture partner Bowleven will not be receiving an extension on their license according to commissioner for petroleum Ministry of Energy and Petroleum Martin Heya. Speaking to OiNews Kenya the commissioner without elaborating why said the license is now vacant after expiring in\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/06\/block-11b.png?fit=495%2C523&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":4734,"url":"https:\/\/www.oilnewskenya.com\/index.php\/adamantine-energy-kenyas-block-11b-license-expires\/","url_meta":{"origin":5426,"position":1},"title":"Adamantine Energy Kenya’s Block 11B License Expires","author":"","date":"June 2, 2016","format":false,"excerpt":"A PSC between Block 11B operator Adamantine Energy and the Republic of Kenya signed in June 2012 has expired with no word of any license extensions or renewal although a JV partnership also involving Bowleven and first oil was unable to complete the initial minimum work programme. The JV partnership\u2026","rel":"","context":"In \"2D seismic\"","block_context":{"text":"2D seismic","link":"https:\/\/www.oilnewskenya.com\/index.php\/tag\/2d-seismic\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/06\/block-11b.png?fit=495%2C523&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":2058,"url":"https:\/\/www.oilnewskenya.com\/index.php\/bowleven-awarded-one-year-license-extension-kenya-block-11b\/","url_meta":{"origin":5426,"position":2},"title":"Bowleven awarded one year license extension Kenya block 11B","author":"Samuel Kamau Mbote","date":"November 17, 2014","format":false,"excerpt":"Bowleven has announced that it has received a license extension to enable evaluation ahead of second phase decision. Following the license extension to May 2015 Bowleven says that the completion of acquisition processing and interpretation of 2D seismic on block 11B remains among the key objectives for the next 12\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/11\/screenshot_1.png?fit=519%2C389&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1158,"url":"https:\/\/www.oilnewskenya.com\/index.php\/2d-seismic-acquisition-in-block-11b-set-for-h2-2014\/","url_meta":{"origin":5426,"position":3},"title":"2D Seismic acquisition in Kenya’s Block 11B set for H2 2014","author":"Samuel Kamau Mbote","date":"June 6, 2014","format":false,"excerpt":"2D seismic acquisition for 500 kilometers in Block 11B is expected to start soon with the tendering process at an advanced stage according to a presentation made Bowleven CEO Kevin Hart at the 11th Africa Independents Forum. Block 11B which is held by Bowleven and Adamantine Energy is 14,200km2 in\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/06\/block-11b.png?fit=495%2C523&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":2662,"url":"https:\/\/www.oilnewskenya.com\/index.php\/adamantine-energy-seeks-15-month-extension-kenyas-block-11b\/","url_meta":{"origin":5426,"position":4},"title":"Adamantine Energy seeks 15 month extension in Kenya\u2019s Block 11B","author":"","date":"March 4, 2015","format":false,"excerpt":"Adamantine, operator of block 11B, has advised that they have applied to the Kenyan authorities for a 15 month extension to allow for the acquisition, processing and evaluation of 2D seismic. This follows delayed commencement of seismic operations due to logistical issues as well as security concerns. Given the above\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/06\/block-11b.png?fit=495%2C523&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":826,"url":"https:\/\/www.oilnewskenya.com\/index.php\/bowleven-to-start-seismic-testing-in-kenyas-block-11b\/","url_meta":{"origin":5426,"position":5},"title":"Bowleven to start seismic testing in Kenya\u2019s Block 11B","author":"Samuel Kamau Mbote","date":"March 31, 2014","format":false,"excerpt":"[twitter-follow screen_name='oilnewskenya'] Bowleven is to soon start the 2D seismic testing in Block 11B after announcing that the seismic tender process is in an advanced stage and the award was imminent. The seismic follows the processed airborne geophysical survey highlights on several basins on the block that is in Turkana\u2026","rel":"","context":"In "Elsewhere in Africa"","block_context":{"text":"Elsewhere in Africa","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/elsewhere-in-africa\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/03\/bowleven_kenyablocksummary_dec2013.jpg?fit=520%2C390&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/5426","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=5426"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/5426\/revisions"}],"predecessor-version":[{"id":5427,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/5426\/revisions\/5427"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/1159"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=5426"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=5426"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=5426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}