Dominion announces that it has signed the Production Sharing Contract (PSC) for Block L15 in the Lamu Basin, offshore Kenya, giving the Company a 100% working interest and operatorship.
The Company previously announced the award of L15 on 1st August 2011 through execution of Heads of Agreement with the Kenyan government. The PSC was signed by Dominion and the Kenyan Ministry of Energy in Nairobi.
Dominion will now begin the initial exploration period of the PSC. The Company will reprocess existing 2D seismic data, carry out block wide G&G studies and acquire a minimum of 250km2 of 3D seismic data in the initial two year exploration period. This will result in a minimum gross expenditure of $2.85mm. Following this initial two year period, the Company can enter the second two-year period by committing to drill a single exploration well. Block L15 lies immediately to the north of Block L8, where the reportedly 1 billion barrel Mbawa prospect shall likely be drilled in mid 2012. This new Block is on the Davy-Walu structural trend, as is Dominion’s Block L9. The only well in Block L15 is Kofia-1, which was drilled by Union Oil in 1985 and encountered good oil shows in the Palaeogene and Upper Cretaceous intervals. Planned drilling by other operators along the Davy-Walu trend over the next 12 months may serve to de-risk the prospectivity in both L9 and L15 before firm drilling commitments are made in either PSC.
[mappress] Source: Dominion Petroleum, October 05 , 2011