Origin completed an agreement with Apache to divest a 50% interest in a production sharing contract for Block L8, located in the Lamu Basin, offshore Republic of Kenya.
Under the terms of the agreement, Apache will obtain operatorship, and reimburse Origin US $13.2 million. Additionally, Apache will meet a component of Origin’s costs of an initial exploration well drilled in Block L8, on the Mbawa structure. The schedule for exploration activity has not yet been determined.
Block L8 spans 1.2 million acres (5,123 square kilometers) with the prospectivity of the block centering on the Mbawa structure, a large but completely faulted anticline. 3D seismic data of the area revealed its potential to hold both oil and gas at inferred Cretaceous and Jurassic reservoir levels, stated Origin. The consortium in Block L8 now includes Apache (50%), Origin Energy (25%) and Pancontinental Oil & Gas (25%).
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