| Lamu Basin - Offshore Kenya
Block L10A & L10B (15%) |
A consortium including Pancontinental signed new Production Sharing Contracts over Blocks L10A and L10B offshore Kenya with the Government of Kenya on 16 May 2011, with an effective date of 17 August 2011. A "fast track" exploration programme has already commenced.
The L10A and L10B Blocks have respective areas of 4,962.03 sq km and 5,585.35 sq km and water depths of 200 to 1,900m, which is within the reach of modern drilling and development technology.
These new Blocks are in addition to Blocks L6 and L8 already held by Pancontinental.
The geological setting is similar to L6 and L8 and also broadly similar to the setting of the new discoveries offshore Tanzania and Mozambique, on the same East African continental margin.
The new areas more than double Pancontinental's gross acreage position offshore Kenya. The members and percentages of the group are-
| L10A | L10B | |
| BG Group plc (Operator) | 40% | 45% |
| Premier Oil Limited | 20% | 25% |
| Cove Energy plc | 25% | 15% |
| Pancontinental Oil & Gas NL | 15% | 15% |
The "fast-track" work programme consists of a first phase of 2D and 3D seismic and then drilling in subsequent phases.
The success of the applications has come about after lengthy efforts by Pancontinental to acquire PSC's over the Blocks. Subsequent to Pancontinental's original applications, Pancontinental joined BG Group and the two were then joined by another bidding group consisting of Premier and Cove.
Initial work by BG Group has identified ten strong "leads" and five diverse "play" types. These are the subject of the new 3D and 2D surveys.
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