Highlights
- Lion Energy has formal agreements with Africa Oil Corp. to earn an interest on Block 9, 10A and 10BB
- Drilling commenced on Block 9 in October 2009 and reached a total depth of 5,085 meters
- 2-D seismic acquired on all Blocks has highlighted several prospects
- Concessions cover an aggregate area of 55,000 sq. km
Overview
In Kenya, Lion Energy has the right to acquire working interests in three Blocks from Africa Oil: a 10% working interest in Block 9; a 25% working interest in Block 10A; and a 20% working interest in Block 10BB. The Company can earn these interests through planned work programs set to take place between 2009 and 2011. All three blocks are located in the Northern region of Kenya, with Blocks 9 and 10A occupying a significant portion of the Anza Basin. Block 10BB is located directly southwest of Block 10A. Together these permits cover an area over 55,000 sq. km. The East African rift basin is one of the last potentially great onshore oil-bearing rift basins to be explored.
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Regional Geology
Anza Basin
The Anza basin is an extension of the Muglad basin located in Sudan. The Muglad basin is host to estimated reserves of over 6 billion barrels of oil. The Muglad and Anza basins were formed in response to the three rift phases occurring from Lower Cretaceous to the Palaeogene time when depostion of source and reservoir rocks occurred. Blocks 9 and 10A cover the entire Northern portion of the Anza Basin.
History
Block 9
A Chevron/Esso joint-venture initiated early exploration efforts between 1973 and 1978 and shot 1,005 km of 2-D seismic data in the southern part of the block. Between 1985 and 1990, Total/Marathon/Mobil conducted gravity surveys and shot 3,750 km of 2-D seismic data. A total of three wells were drilled: Ndovu-1, Duma-1 and Kaisut-1. Both the Ndovu-1 and Duma-1 wells encountered gas in the Lower Cretaceous section.
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The Chinese National Offshore Oil Corporation (CNOOC) then acquired the Block in April 2006 and continues to act as the operator. In 2008, CNOOC acquired 581 km of 2-D seismic that outlined two potential targets in the Bogal and Rollover structures. Along with its partners Africa Oil and Lion Energy, CNOOC has proposed to drill the Bogal-1 target to test the reservoir potential of the Cretaceous and Jurassic formations. The Bogal-1 well was drilled to a total depth of 5,085 meters in April, 2010. Gas shows and petrophysical analysis of wireline logs have indicated multiple gas pay zones totaling approximately 91 metres in Lower Cretaceous sandstones. Further testing did not provide definitive results in the Bogal-1 well that could lead to commercial exploration at this time. However, data acquired from this deep well will greatly contribute to identifying the hydrocarbon potential on a number of excellent oil and gas prone prospects remaining on Block 9, which remains a very attractive asset in our portfolio.
Block 10A
Significant amounts of seismic were acquired over the property by Amoco Africa. During 1988-89 a total of three wells were drilled: Sirius-1, Bellatrix-1 and Chalbi-3, with all reporting significant oil and gas shows in the Cretaceous sandstones. Geochemical analysis of oil samples recovered from upper Cretaceous sands in Sirius-1 indicated a lacustrine source rock. A further 750 km of seismic data is scheduled to be acquired in mid 2010 with drilling tentatively scheduled to commence in 2011.
Block 10BB
The original Block 10 was licensed to Amoco Kenya in March 1985 under a Production Agreement for an initial period of four years. Amoco subsequently drilled three holes in the Cretaceous Anza rift. Of these, two had oil shows in the Upper Cretaceous fluvial/lacustrine sands. After the initial exploration period, 50% of the block was relinquished. Shell then obtained a 50% interest in, and operatorship of, the blocks through a farm-in agreement. Shell was required to acquire seismic data over the identified prospective areas and to drill two wells. By this time Shell’s exploration activities were focused to the sub-basins located in Block 10BB. Shell reprocessed 939 km of Amoco 2D seismic data, acquired 1,075 km of new 2D data and drilled two wells. The second well, Loperot-1 recovered some oil and penetrated two intervals of lacustrine sediments, containing good to excellent source rocks. No further work was completed until Turkana acquired the property in October 2007. A further 500 km of seismic data is scheduled to be acquired in early 2011 with drilling tentatively scheduled to commence thereafter.
Exploration Timelines
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