Australia’s FAR Limited has finalised a farm-out of part of its stake in Block L6 in Kenya, which covers both on and offshore territory and where potential reserves of up to 3.75 Bbbl have been identified.

FAR has finalised a deal with Dubai-based Milio International through which the latter will acquire 60% of the onshore section of the licence block but FAR will retain 60% in the offshore area and its existing partners, Pancontinental and Afrex retain 40%.

The company has already undertaken an airborne gradiometry and magnetic survey over the area, and along with its partners completed a 778 sq km (300 sq. mile) 3-D seismic acquisition programme in 2012.

Farm out discussions are continuing over the offshore section of the block, FAR says.

Block L6 lies in the Lamu Basin, north of the huge gas finds totalling more than 100 Tcf discovered in deepwater off Mozambique and Tanzania.

FAR says it was the first company to acquire 3-D seismic over a Miocene reef play type now being tested by BG Group with the Sunbird-1 well in Kenyan Block L10A, which spudded in January.

Analysis of data from L6 suggests multiple play types and three offshore prospects have already been matured for drilling, Tembo, Kifaru, and Kifaru West, for which gross reserves have been estimated at 327, 178 and 130 MMbbl respectively.

Overall FAR estimates combined unrisked prospective resources in the block at 3.75 Bbbl of oil or 10.23 Tcf of gas.