Australia's Pancontinental Signs Farmin Agreement for Kenya Oil, Gas Permit

Australia listed Pancontinental Oil & Gas has announced that it has entered a farm-in agreement for the onshore portion of Kenyan exploration area Block L6 in the Lamu Basin.

Block L6 is partly onshore and partly offshore. Kenyan Block L6 is located in the Lamu Basin offshore and onshore Kenya, and north of recent world scale natural gas discoveries totalling around 100 trillion cubic feet off the coasts of Mozambique and Tanzania.

“Under the terms agreed with farminee Milio E&P Limited and Milio International the current joint venture parties including Pancontinental will be fully funded through drilling and testing an onshore exploration well in Block L6 with an expected spud date in early 2015,” Pancontinental said.

According to Pancontinental, an onshore oil or gas development has the potential to contribute significantly to Kenya’s growing near-term energy needs. “A gas discovery could supply gas to a major power generation project that is currently under consideration by the Kenyan Government,” the company said.

As per the agreement, Pancontinental will retain a 16% working interest in the onshore part of Block L6. The company retains its current 40% interest in the offshore part of Block L6.

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