Taipan Resources has two exploration areas in Kenya
Taipan Resources acquired the assets of Lion Petroleum through a formal amalgamation and in conjunction with a $11.5 million financing that closed on July 17th, 2012 (the 'Transaction'). Through this amalgamation, Taipan has acquired acreage for exploration in Block 1 and Block 2B in the north east of Kenya covering a total area of 9.7mm acres.
Block 1 in Kenya covers an area of 7.8 mm acres and in northeast Kenya, bordering Somalia and Ethiopia. The presence of an active petroleum system in the area of Block 1 is clearly demonstrated by the Tarbaj oil seep located on the southwest portion of Block 1. The northern portion of Block 1 is an extension of the Ogaden basin that in Ethiopia contains approximately 4 trillion cubic feet of natural gas resources. The prospective sections in Block 1 are expected to be oil prone as demonstrated by the Genale oil seep and the El Kuran light oil discovery in Ethiopia. Based on current data, the partners estimate gross prospective resources on Block 1 to be 715 million barrels of oil equivalent. Lion Petroleum was awarded this block in 2007 and EAX, a wholly-owned subsidiary of Afren, became a farm-in partner in January 2009. Afren plc have a 80% interest and currently act as operator of the concession. Taipan Resources has the remaining 20% interest.
Block 2B is located at the southernmost extension of the northwest-southeast trending Anza Graben, near the juncture with both the Mandera-Lugh and Mochesa Basins. The Block contains both Tertiary and Cretaceous plays. The Tertiary plays are analogous to the Tullow Oil plc and Africa Oil Corporation Ngamia-1 discovery located in the main Tertiary rift to the west. The Cretaceous plays are a potential extension of the Sudanese oil-productive Melut and Muglad basins. The NI 51-101 report completed by Sproule Associates Limited concludes that Block 2B has a mean of 387 million barrels of oil equivalent of unrisked prospective resources within the 17 exploration leads identified thus far.
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.
Kenya, Block 1
- Taipan 20%, Afren 80% (the operator)
- Covers an area of 31, 781 km2
- Extension of productive Ogaden basin
- Oil seep on south west basin flank
- Oil discovery (1972) made in nearby Ethiopia
- 1,200km 2D seismic started in November 2011
Kenya, Block 2B
- Taipan 100%
- 7,807 km2 (1.9 million acres) - equivalent to 43 North Sea Blocks
- Prospective resources of 387 mmboe based on Sproule and Associates NI 51-101 report with 17 leads in total and individual leads of up to 128 mmboe
- Thick Tertiary section and structures similar to the Tullow / Africa Oil Ngamia-1 discovery (March 2012, net pay > 100 metres) based on existing seismic
- Oil and gas shows proven on Block 2B with the Hothori-1 well drilled by Amoco in 1989
- Western boundary fully contiguous to Africa Oil’s Block 9 where Marathon Oil farmed-in July 2012 for $78.5mm – tertiary play extends through Block 9 into Block 2B
- Multiple potential play-types – Block 2B also on trend with the cretaceous discoveries of the Melut and Muglad Basins of Sudan
- Expect to drill at least one well in 2013