Taipan takeover target, Lion Petroleum, has agreed a farm-in deal with NewAge (African Global Energy) Ltd for Block 2B onshore Kenya
The deal would see NewAge fund 50 per cent of the costs of the proposed work programme on Block 2B and provide 50 per cent of the US$5,875,000 bank guarantee required by the Government of Kenya.
NewAge is an independent oil and gas exploration and development company that currently holds licences for 13 onshore and offshore blocks in Congo-Brazzaville, Ethiopia, South Africa and Kurdistan.
"The farm-in with NewAge provides additional industry validation as to the prospectivity of Block 2B in addition to a partner with significant technical and financial capacity and extensive experience operating in sub-Saharan Africa," said Taipan director, Charles Watson.
Taipan Resources has also issued a progress report on its proposed acquisition of Lion Petroleum, with the takeover expected to be completed on or before July 16, 2012.
Lion is an oil and gas exploration company with interests in 9.7 million gross oil and gas exploration acres onshore Kenya, known as Block 1 and Block 2B.
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