Taipan Resources has two exploration areas in Kenya
Taipan Resources acquired the assets of Lion Petroleum Corp through a formal amalgamation and in conjunction with an $11.5 million financing that closed on July 17th, 2012. Through this amalgamation, Taipan acquired exploration acreage in Block 1 and Block 2B in the northeast of Kenya. The blocks - post partial relinquishment - now cover a total area of 27,711 square kilometres.
Taipan holds a 45% equity interest in Block 2B and is the Operator. The Block covers an area of 5,458 square kilometres is located at the most southeasterly extension of the NW-SE trending Anza Basin, 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, Twiga, Etuko,Ekales, Agete, Amosing and Ewoi discoveries 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 Resource report recently completed by Sproule Associates Limited concludes that Block 2B has mean un-risked prospective resources of 717 million barrels oil equivalent within the 19 exploration leads identified thus far. Taipan has acquired 636 kilometres of 2D seismic data and 12,175 kilometres of Full Tensor Gravity data over the block. Taipan through its wholly owned subsidiary, Lion Petroleum Corporation, signed a farm-in agreement with Premier Oil of the UK on the 3rd of October for a gross investment of $30.5 million.
Taipan holds a 20% interest in Block 1 and Afren is the Operator. The block covers an area of 22,711 square kilometres and lies in northeast Kenya, bordering Somalia and Ethiopia. The presence of an active petroleum system in the area 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.