The Kenyan government has agreed a 60% expansion of a frontier permit operated by Australian independent FAR Limited off the coast of the East African exploration hotspot.

The government confirmed the 60% expansion of the L6 exploration permit in the Lamu Basin, according to FAR’s 40% permit partner Pancontinental Oil & Gas. The area, which had previously been relinquished, has been re-instated and now encompasses a total area of 5,010 sq km (previously 3,134 sq km).

The respective interests in the Kenya L6 block are: FAR Ltd (operator, 60%) and Pancontinental (40%). Pancontinental said that, from recently acquired processed 3D seismic data and earlier 2D data, the operator has identified a number of play types and prospects in the permit. Significantly, it added, FAR has interpreted a new play type, the Miocene carbonate reef play, which extends into the newly awarded acreage.

“The operator estimates that the new acreage has prospective resources of 773 MMbbl of oil or, in a gas-only success case, 2,141 Bcf of gas (un-risked best estimate, 100% basis). This brings the prospective resource estimate for the total L6 permit to 3,962 MMbbl oil or in a gas-only success case, 10,689 Bcf (unrisked),best estimate, 100% basis),” it stated.

FAR has matured three prospects (Tembo, Kifaru and Kifaru West) in the block, which have prospective resources of 327 MMbbl, 178 MMbbl and 130 MMbbl of oil (un-risked best estimate, 100% basis) respectively, or in a gas-only success case, 807 Bcf, 517 Bcf and 388 Bcf of gas.

The first exploration well location on L6 will be selected shortly after the fully processed 3D data is received, which is expected in April this year. Well planning activities for drilling have already started, added the minority partner. The companies have also started a farm-in initiative to select a suitable partner to fund and potentially operate the exploration well.

Pancontinental participated in originating the L6 and the L8 projects, with the deepwater Mbawa gas discovery made late last year in L8 by a JV led by operator Apache Corporation (Pancontinental 15%). The Mbawa-1 well encountered 52 m (171 ft) of net gas pay and had possible indications of the presence of oil.

The nearby L10A and L10B projects offshore southern Kenya (Pancontinental 15%) are operated by BG Group.
FAR also confirmed that in nearby deepwater Block L9, operated by Ophir Energy (in which it holds a 30% interest), a farm-in initiative has been initiated.

Nine wells are planned in the Lamu Basin within the next 18 months, while Anadarko recently spudded two wells, one in Block 11A (Kiboko-1) and another in Block 7 (Kubwa-1).