Pancontinental Awarded 3 Exploration Licenses Offshore Kenya

Pancontinental and Afrex Limited have been awarded exploration rights to blocks L6, L8 and L9 offshore Kenya. The three blocks total 5,288,000 acres and is located immediately north of the Port of Mombossa. The majority of the permits lie in shallow waters, however, some of the eastern portion of the permits lie in water depths of up to 3,200 feet.

During the first two-year exploration period on blocks L6 and L8 and the first one-year exploration period for block L9, extensive re-interpretation and re-mapping will be performed and a new seismic study will be carried out. During the second phase of exploration the partners plan to drill two exploration wells and perform another seismic study. During the third phase, twelve exploration wells are planned.

The principal geological plays include large Tertiary delta complex, similar to the North West Shelf, and other continental margins sedimentary basins that hose extensive petroleum reserves. Other potentially productive geological plays include large Tertiary age limestone reef complexes, and an older Jurassic age sequence. Mapping of existing data has already shown the existence of a number of very large structures in the 3 areas capable of containing commercial reserves. Show of oil and gas have been reported in some of the few existing wells in the basin.

These strata appear to have all the components necessary to host significant hydrocarbon discoveries, similar to the major offshore Songa-Songa gas field discovery in neighboring Tanzania. Songa-Songa is now under development, include the building of pipelines and power generation infrastructure. This project wil be the first to provide an indigenous energy source for East Africa’s otherwise totally import dependent power generation, industrial, transport and domestic petroleum requirements.

The Kenyan project can now be added to the offshore Malta project which was awarded to the partners in mid-2001. Pancontinental holds a 40% interest in the Kenyan blocks and Afrex Limited is the operator and holds the remaining 60% stake.