East African Exploration Takes Bigger Bite of Kenyan Block L17/L18

East African Exploration, a Black Marlin Energy Group Company, has increased its interest in the Kenyan Block L17/L18 Production Sharing Contract, by 25% under an agreement reached with Aminex PLC ("Aminex").

EAX is a joint venture participant in the Nyuni PSA ("Nyuni") in Tanzania and also in the L17 & 18 PSC ("L17 & 18") in Kenya. Aminex held 25% in L17 & 18 while EAX held 10% in Nyuni acreage. The terms of agreement, which has been approved by the governments of both countries, are as follows:

  • Aminex will transfer its 25% interest in L17 & 18 to EAX increasing EAX's interest to 65%.
  • EAX will transfer its 10% interest in Nyuni to Aminex.
  • Aminex will make a cash payment to EAX of $1 million
  • EAX will become operator of the L17/L18 concession.

This arrangement consolidates EAX's substantial position in Kenya and adds a further operatorship to EAX's Block 1 in the Mandera Basin of NE Kenya. Shallow water/TZ seismic acquisition in L17/L18 is planned for Q4 2009 using EAX's sister company UPSL operating from its Mombasa base, to identify new shallow water and land based leads prior to a commitment to drilling in 2010/2011. Mombasa and its power station and crude oil refinery lie within the L17/L18 concession area, offering an immediate market for any hydrocarbons found.

Jeff Hume, CEO of Black Marlin Energy, commented, "Our recent revaluation of the data in both Nyuni and L17/L18, the closeness to the major energy market in Mombasa, the difficulties of gas monetisation in Tanzania, coupled with our increased interest and commitment to Kenya, led to us making this strategic move, which fits well with our recently announced reverse takeover of Kristina Capital and possible public listing on the TSX. We look forward to accelerating the exploration of L17/L18 including the imminent acquisition of TZ seismic data using the UPSL crew in the southern portion of L18 just to the north of the Pemba Oil seep."

Black Marlin Energy is a privately held Dubai based Oil and Gas exploration company with wholly owned subsidiaries, East African Exploration and Upstream Petroleum Services Limited. It has exploration acreage in Seychelles, Madagascar, Kenya and Ethiopia.