Australian explorer Pancontinental oil and gas has announced it is considering drilling a second well in the Kenyan block L10A where BG Group is the operator.
The new well follows the ongoing mapping of 3D data at the block where the Sunbird-1 discovery intersected a gross 29.6m gas column overlying a gross 14m oil column in the Sunbird Reef making it the Kenya’s first offshore oil discovery.
Pancontinental says it is also continuing discussions with the ministry of energy Kenya concerning a new license for L8 offshore Kenya where the company holds a 15% stake together with Origin Energy at 25 percent and Tullow oil at 15%.
Pancontinental has since last year been awaiting for the block operator which relinquished its share in the block to cede its 50 per cent stake.
“The L8 Joint Venture will discuss the best way forward and determine the new operator of the Licence after it has been formally notified by Apache of its intention to withdraw. Subject to ministerial consent Pancontinental expects to increase its interest in the L8 licence on a pro-rata basis, at no material cost,” said Pancontinental CEO Barry Rushworth in October last year.
Block L8 saw Kenya’s first discovery of gas encountering approximately 52 meters of net gas pay.
Meanwhile the company has announced that it has received an extension of the block L10B license even as it increased its interest to 25 percent.