KENYA BLOCK 2B
South Anza Graben, Kenya
Block 2B was awarded to Lion in 2008 and is situated in north eastern Kenya at the convergence of the Anza and Mandera Lugh basins. The block covers a total area of 1.9 million acres (7,806 km2). Exploration carried out in the past includes 1974-75 vintage 2D seismic and one exploration well drilled in 1990.
Taipan commenced a farm-out process for Block 2B onshore Kenya in August 2012. The Company is currently in discussions with a number of potential farm-in partners and expects to announce a definitive farm-out agreement by year-end 2012 subject to the approval of the Government of Kenya. Management believes that newly defined Tertiary plays on Block 2B are analogous to the recent Ngamia-1 oil discovery.
- Located in Anza Graben
- Southern extension of Sudanese oil-productive Melut and Muglad basins, with approximately 6 billion barrels of reserves
- Thick, prospective Tertiary sequence underlain by Cretaceous secondary target
- Old seismic demonstrates stratigraphic and structural leads in Tertiary and Cretaceous
- 387 million barrels mean prospective resources (unrisked)*
- Multiple structural prospects*
- Oil and gas shows in Hothori 1 well, drilled in Block 2B in 1989 by Amoco
- Seismic interpretation shows well was off-structure
- Proves late Cretaceous to Tertiary lake with good quality, source rocks
- Source rocks expected to thicken off-structure
- Large Tertiary half-graben rift play
- Possible analogy with main Kenyan Tertiary rift
The acreage is located at the convergence of the Mandera-Lugh, Mochesa and southernmost extent of the Anza basin, which is at the eastern termination of the oil-prolific Central African Rift System. The western portion of Block 2B, where exploration has been focused to date, is dominated by the Anza graben. This is equivalent to the productive Melut and Muglad Cretaceous grabens in South Sudan where key oil finds such as the Unity Field are located.
In Block 2B there is up to 15,000 feet of prospective Tertiary section which is effectively untested. The only well in the Block, Hothori 1 drilled in 1989, had oil and gas shows in the Tertiary and penetrated an Eocene-age lacustrine source rock which could thicken into the Tertiary depocentre. Recent re-mapping of the old seismic data demonstrates the potential for stratigraphic and structural trapping associated with the Tertiary depocentre close to the bounding Lagh-Bhogal fault, and in the basin centre.
Several wells have been drilled in the Southern Anza Basin, numerous oil and gas shows have been observed. The recent Bhogal-1 well, to the northwest of Block 2B, reported 91m of gas pay in Lower Cretaceous reservoirs, and is being further evaluated by Africa Oil and Marathon Oil.
Block 2B's past exploration activities include geological, magnetic, gravity, seismic surveys and drilling. In Block 2B, the Hothori-1 well was drilled in 1989 to 4,394m and reported gas shows in the Tertiary and Cretaceous and fluorescence in the Tertiary indicating the presence of liquid hydrocarbons. In addition, the well encountered potential source rocks within the Tertiary and lower Cretaceous. The 2D seismic, principally acquired during the 1970's, has been reinterpreted by Sproule International Limited in 2011 and numerous prospects and leads have been generated as a result. The further re-processing and interpretation by Senergy (UK), designed to focus on the Tertiary potential, has confirmed that it is the primary play in this area.
The environmental impact assessment has been completed and existing seismic has been re-mapped by Sproule. The upcoming 2D seismic acquisition program schedule has been designed to better image play fairways, prospects and leads.