KENYA BLOCK 2B

South Anza Graben, Kenya




Overview

  • Lion Petroleum Corp Operator 30%, Premier Oil Investments Ltd 55%, Tower Resources 15%
  • In First Additional Exploration Period (expires June 1, 2015)
  • Work commitment 100 kilometres of 2D seismic, plus 1 well to 3 000 metres: Total $13 million
  • Located in Anza Basin covers 5,458 square kilometres
  • Plays: Primary Tertiary sequence underlain by Cretaceous secondary target
  • 717 million barrels mean prospective resources (un-risked)*
  • Oil and gas shows in Hothori 1 well, drilled in Block 2B in 1989 by Amoco, well was off-structure
  • Lion acquired 440 kilometres of 540 fold 2D seismic, and 12,175 kilometres of Full Tensor Gradiometer data in the first half of 2013 and a further 196 kilometres of 2D seismic data at the beginning of 2014.


Geology
The acreage is located at the convergence of the Mandera-Lugh, Mochesa and most southeasterly 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 Basin. In Block 2B there is up to 5,000 metres of prospective Tertiary section which is effectively untested. The only well in the block, Hothori-1, drilled in 1989, encountered oil and gas shows in the Tertiary and penetrated an Eocene-age lacustrine source rock which is likely to 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.

Exploration Status
Several wells have been drilled in the Southern Anza Basin and numerous oil and gas shows have been observed. The recent Bhogal-1 well, to the northwest of Block 2B, reported 91 metres of gas pay in Lower Cretaceous reservoirs, and is being further evaluated by Africa Oil and Marathon Oil.

Past exploration activities in Block 2B include geological, magnetic, gravity, seismic surveys and drilling. The Hothori-1 well was drilled in 1989 to 4,394 metres, encountering gas shows in the Tertiary and Cretaceous sections, together with oil fluorescence in the Tertiary section. In addition, the well encountered potential source rocks within the Tertiary and Early Cretaceous. The 2D seismic data, principally acquired during the 1970s and in 2013, have been reinterpreted by Sproule International Limited in 2013, and numerous prospects and leads have been generated as a result. Further re-processing and interpretation by Senergy (UK), designed to focus on the Tertiary potential, previously confirmed that it is the primary play in this area.

In early 2013 Taipan acquired a 12,175 kilometre FTG survey and acquired 440 kilometres of 540 fold 2D data seismic data. The company has developed a number of prospects and leads that are similar to the Ngamia, Twiga, Etuko Ekales and other associated discoveries. In early 2014, the company acquired a further 196 kilometres of 2D seismic data in order to delineate a drilling location for the planned Badada-1 well on the Pearl Prospect. This data is currently being interpreted.





Future Outlook
Taipan plan on acquiring up to 100 kilometres of high fold 2D seismic data in early 2014 over the Pearl Prospect and to spud an exploration well in Q3 2014 .