Zarara Oil and Gas Awarded 4 month License Extension in Kenya’s Blocks L4 & L13

Zarara Oil and Gas the operator of blocks L4 and L13 has received a second extension to the current extension by the Ministry of Petroleum and Mining to enable them to drill a well in Pate Island earlier planned for drilling by 31st December 2017.The second extension means the contract will now expire on 2nd April 2019 four months after the earlier 2nd December 201 expiry.

The extension that stretches to 2nd April 2019 carries a conditional fulfillment that the company must now spud the Pate 2 well by 30th April this year with the civil works, drilling pad complete and personnel already in the camp awaiting a new rig.

The delay in drilling the Pate 2 well according to reliable emanated from a fall out between the company and the drilling company Great Wall drilling in the last minute that has necessitated Zarara to source a new rig.

2600HP land rig Sakson SK604 formerly contracted with Sonatrach

OilNews Kenya can further confirm that the other bidder Dubai based company Sakson will now drill the well using the 2600hp Sakson SK604 rig currently in Algeria and with the ability to reach a total depth of 5500 meters. The rig is currently undergoing inspection to certify it capable of drilling safely.

The well expected to reach a depth of 4500 meters will take 120 days to drill, test and complete. A second well Pate 3 is scheduled to be drilled thereafter using the same well pad as Pate 2 using directional drilling technique to a vertical depth of 4500 with the total measured depth will be approximately 5,000 metres. The required drilling time to approximately 120 days to drill, test and complete.

Already OilNews Kenya has reported that the company has contracted Norwegian company North Sea Well Engineering Limited (Norwell Engineering) as the design and planning company that will ensure everything goes as plotted. Other companies contracted as reported include:  Medivac-Kenya which will provide medical services to the workers in camps while corporate security company and risk management contractor Salama Fikira will be in charge of security all of which are already on site.

Zarara Oil and Gas Limited (‘Zarara’) which holds a 75% working interest is a 100% subsidiary of Midway Resources. CH-Swiss Oil Holdings International holds 15% and the National Oil Company of Kenya at 10%. MRI has negotiated a legally binding heads of agreement for the eventual acquisition of the 15% interest of CH-Swiss Oil Holdings.

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