Premier Oil PLC will farm into Block 2B in the southern Anza Cretaceous rift basin onshore eastern Kenya along the border with Somalia by acquiring a 55% interest from Taipan Resources Inc.
Premier will pay Taipan’s Kenyan subsidiary Lion Petroleum Corp. back costs of $1 million. Premier will also pay Taipan’s working interest share of the cost of drilling and testing the Pearl prospect and future costs on Block 2B up to a cap of $13.275 million. Premier has the option to assume operatorship of any future development on the block.
Premier Oil said the initial well will target the Pearl prospect with an estimated gross prospective resource of 100 million bbl of oil, and that the remaining lead inventory is capable of delivering in excess of 500 million bbl gross.
Completion of the farmin is subject to satisfactory completion of financial audits and confirmation of the terms of the PSC from the Kenyan government.