East African Exploration has farmed-in to Block 1, Kenya with the right to earn up to 80% equity in some circumstances.
The agreement, signed between EAX and Permit holders, Lion Petroleum was executed on September 30. EAX will operate the block on behalf of the Joint Venture. The deal still requires formal approval from the Kenyan Ministry of Energy but will involve an extensive and accelerated exploration work program, including extensive gravity and magnetic surveying and up to 1,200km of 2D land seismic in two phases.
The block, covering 33,000 square kilometers, is considered largely under-explored and lies in the northeast of Kenya, over the western part of the Mesozoic Madera-Lugh basin, representing the western part of the extensive Ogaden Basin of Ethiopia and Somalia. EAX is looking forward to continuing its exploration activities in this new part of Kenya. EAX also carries a 40% equity in Block L17/L18, offshore Mombasa.
Jeff Hume, CEO of Black Marlin Energy, commented, "EAX has been pursuing acreage positions in Kenya since the Company's formation. This agreement with Lion gives us the opportunity to commence onshore exploration of an area which we believe is oil prone with excellent potential of commercial hydrocarbons. Since joining EAX earlier this year from Woodside, EAX's Exploration Manager, Neil Taylor has been looking at a number of opportunities in Kenya in which we feel that the Black Marlin Energy Group's assets and technical knowledge can be applied. We look forward to working with Lion and operating the Block on the JV's behalf.”
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