BG Group Starts Seismic Work Offshore Kenya

Cove announced that 3D seismic acquisition has commenced in offshore Kenya license areas L10A and L10B.

After completion of the 3D survey, the vessel will be reconfigured and will commence 2D seismic acquisition in the western portion of the areas.

The L10A and L10B licenses were awarded to Cove Kenya, operator BG Group and other joint venture participants (the "Joint Venture") on 17 May 2011, with an effective date of August 17, 2011.

The Joint Venture has been pursuing a "fast track" exploration program and BG Group has already mapped ten strong "leads" and five diverse "play types" using existing seismic data. Most of the leads will be covered by the new seismic surveying.

It is anticipated that the seismic data will be fully processed by mid 2012 and interpretation and mapping will be completed later that year. The aim of the survey is to fully map a number of prospects prior to drilling.

The L10A and L10B joint ventures consist of:

  L10A L10B
BG Group 40% 45%
Premier Oil 20% 25%
Cove 25% 15%
Pancontinental O&G NL 15% 15%

John Craven, Chief Executive of Cove Energy, said, "We are very pleased to announce the fast tracked commencement of the seismic surveys across our license area in Blocks L10A and L10B, offshore Kenya. By accelerating this work program our joint venture partnership will gain an added ability to swiftly assess and explore this highly attractive acreage and this activity complements our recent 3D seismic acquisition in the adjacent Blocks L5, L7, L11A, L11B and L12, where we currently plan to drill an exploration well in 2012.

"We are delighted to be involved in such active Kenyan exploration programs, which complement our other activities in the prospective and highly sought after hydrocarbon province, now emerging in East Africa."