Africa Oil Business News

Sat03292014

Last update02:56:27 PM

FAR Completes Kenya Farm-in Deal

AR Ltd. completed its farm-in deal for its highly prospective onshore and offshore Kenya exploration permit, Block L6 in the Lamu Basin. Under the terms of the farm-in with Milio E&P International, FAR will be fully funded through the drilling and testing of a high impact onshore exploration well in Block L6. The first well is expected to spud in H1 2015.

The agreement also calls for FAR to be fully funded through the acquisition, processing, and interpretation of a regional onshore 1,000-km 2D seismic survey. This is expected to confirm a number of prospects in L6 as drill targets. This seismic program is expected to commence in April 2014.

The farm-in agreement, between Milio and the current L6 JV parties including FAR, is conditional on obtaining the necessary Kenyan government approvals.

On completing the farm-in agreement FAR will retain a 24% interest in the onshore part of Block L6 and maintain its 60% interest in the highly prospective offshore part of Block L6.

“This third farm in deal by FAR in less than 12 months is further recognition of FAR’s ability to realize significant value from its quality exploration portfolio. In a few weeks FAR will start drilling the first of two high impact offshore wells in Senegal which are targeting over 1.5 billion barrels of prospective resources. With this new farm in deal, FAR secures funding for a third well, the first for FAR in Kenya, that will evaluate the significant potential of the onshore part of Block L6 and help unlock the potential of the wider Lamu Basin in which FAR has a large acreage position.”

Petroleum Africa

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