Afren Kicks Off Seismic Work at Kenya Block

Lion Petroleum Corp. announced that its partner Afren plc has started the acquisition of 1,118 miles (1800 kilometers) of 2D seismic in Block 1, north-eastern Kenya. This is a key step in the exploration of Block 1, which has not seen exploration activity since approximately 1990. The seismic crew first entered the area in late November, 2011. After building the seismic camp and logistical preparations, recording of new seismic data has now commenced.

The purpose of the new seismic is to delineate exploration prospects for drilling during 2013. Depending on rate of acquisition, the 1,118 miles (1800 kilometers) survey should be completed during the third quarter of 2012. The partnership is utilizing real-time field processing and interpretation of the new data.

The location of Block 1 is shown on the following map. Block 1 occupies over 12,271 square miles (31,781 square kilometers or 7.8 million acres) in the Mandera Lugh basin, which extends north into Ethiopia where it is known as the Ogaden basin. Lion has a 50 percent working interest and is carried through the first 373 miles (600 kilometers) of seismic expected to cost approximately $6 million gross, by Afren, the operator, which farmed-into the license.

In the first half of 2011, the partnership acquired airborne gravity and magnetic data to define the major basin geometry and to plan the new seismic.

There is clear evidence of a working petroleum system in the basin. The well-known Tarbaj oil seep is located in the south-west portion of Block 1. In Ethiopia, close to the Block 1 border, the El Kuran 1 & 2 wells drilled by Tenneco in 1972 encountered oil; an offset exploration well is expected to be drilled later this year by Africa Oil. To the west of El Kuran, the Genale oil seep occurs on the basin flank. Further north, the basin is gas productive from the Hilal and Calub fields, which also have light oil.

Block 1 presents a very exciting exploration opportunity. Lion is pleased that the recording of the new 2D seismic has now commenced, and looks forward to defining multiple drill targets from the interpretation of the seismic, leading to exploration drilling.