FAR and Ophir Energy sign agreement for offshore Kenyan block

oil kenya damian gadal flickrAustralia-listed FAR has announced that it has entered into a joint venture agreement with Ophir Energy to carry out exploration activities on a block offshore Kenya

Block L9 is located in the heart of the Lamu Basin and a series of seismic surveys have identified numerous oil and gas prospects and leads, according to FAR.

The company said FAR will pay approximately US$11mn relating to the two large 3D seismic surveys acquired on the permit.

Block L9 was originally awarded by the Kenyan government in May 2011 to Dominion Petroleum Kenya Limited, a wholly-owned subsidiary of Ophir Energy, as the nominated operator on the permit. Since then, FAR and Ophir Energy have been negotiating the terms of the deal for FAR to obtain a 30 per cent participating interest.

The block contains well-developed large carbonate Miocene reef structures that are perceived to be oil-prone. There are turbidite sands at several levels over most of the permit with potential for both structural and stratigraphic plays, according to FAR.

The eastern part of the block is on trend with the Mbawa-1 gas discovery, where several large structural leads have been identified, the company added.

FAR said it has already assessed several leads, each with the potential to contain prospective resource volumes in excess of 300mn barrels of oil.

The joint venture anticipates drilling its first exploration well in late 2014.



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