Rift Energy has said it is ready to go ahead with drilling of its first well in Block L19 with pre-drilling works now complete.
The company says it has identified four drill-ready prospects and 20+ additional leads with significant reserve potential and is currently in the final stages of completion of the Environmental Impact Assessments in the prospects.
Rift Energy adds it is in the process of evaluating drilling tenders and is in discussion with the suppliers of other goods and services pertaining to the drilling program are ongoing.
The Houston based explorer adds that it expects drilling costs to come down as compared to prior year estimates due to the world-wide depressed oil prices.
“The currently depressed world-wide commodity price structure creates many challenges and opportunities. In East Africa, we view this environment as an opportunity to find and develop assets at a lower cost structure, which will enable us to capitalize on the upside when oil and gas prices return to historical levels,” says Rift Energy President Fred Zaziski.
Rift Energy estimates the current resource reserve estimates for its four drill-ready prospects include a total mid-range recoverable resource reserve estimate of 856 MMBLS oil and 13.6 TCF gas.
The explorer adds it continues advanced discussions with several potential farm-in partners that will provide additional technical and financial support for its initial exploratory drilling program.
Rift is currently in the second exploratory phase which will see the company obligated to either acquire 500 KM of 3D seismic or drill an exploration well during the next two years.
There has been only one well drilled on Block L19 to date the Ria Kaluli 1 well was drilled off structure to a depth of 1,538 meters in 1962 and was plugged after encountering oil shows in the Karoo formation.