Lamu Oil and Gas, a joint venture between Edgo Energy and QFB has received an extension in Kenya’s block L14 following an expiration of the earlier granted First Additional Exploration period on December 5, 2016, OilNews Kenya has learnt.
According to our source Lamu Oil and Gas negotiated for an additional 24 months to complete further 1000 kilometers of 2 to 4 km spaced 2D infill seismic as envisaged in Q3 2016 as opposed to the earlier demand for 3D seismic by the Ministry of Energy and Petroleum as well as prepare to drill a well in the block which was granted.
Lamu Oil and Gas has, as operator, acquired 734 km of 2D reconnaissance seismic across the Tana River and Delta districts as well as relinquished 25 percent of the block obligation of 3,672 km2. The relinquished area included the westernmost section of the block, which has been determined to be non-prospective and mostly encompasses the Tsavo Nature Reserve.
The new 2D infill seismic will mostly concentrate in the eastern sub basin of block L14 which is a high graded prospective area with elements of a working Tertiary and Cretaceous petroleum system.
As per the earlier signed work commitment for block L14 Lamu Oil and Gas in the second exploration period (2 years) entails a $20 million minimum spend commitment to fund drilling a well to 3000 metre depth.
Lamu Oil and Gas Limited signed a Production Sharing Contract for onshore block L14 in July 2012 in Kenya’s Lamu basin.