Premier Oil has signed a farm-in agreement for 55% of Taipan Resources licence onshore Kenya.
The Block 2B licence in the Southern Anza basin holds an estimated 600million barrels of oil and the initial well is expected to deliver 100million barrels of oil, the company said.
Under the agreement, Premier will pay Lion Petroleum, a wholly-owned Kenyan-based subsidiary of Taipan, back costs of $1million.
Premier will also pay Taipan’s working interest share of the cost of drilling and testing the Pearl prospect and future costs on Block 2B up to a cap of $13.275million.
“We are delighted to have reached an agreement with Taipan and obtained acreage in the emerging onshore rift plays of East Africa,” said Simon Lockett, Premier Oil’s chief executive.
“Rift basins are a core play for Premier and in this instance we have gained access to a play opening opportunity with meaningful follow on potential.”
