Africa Oil Corp (AOIFF)

[Tamtam]

Africa Oil Spuds in Kenya—Plans Ethiopia Exit

Wednesday, September 3, 2014

Africa Oil Corp. spuds a well on Block 9 onshore Kenya to appraise the Sala gas discovery. The original Sala discovery drilled a large 80-sq km anticlinal feature along the northern basin bounding fault in the Cretaceous Anza graben and encountered several sandstone intervals which had oil and gas shows. An upper gas bearing interval tested dry gas at a maximum rate of 6 Mmcf/d from a 25-meter net pay interval. The Sala-2 appraisal well is designed to test the updip extent of this main reservoir sand. A lower interval at Sala-1 also tested gas at low rates of dry gas from a 50-meter potential net pay interval and will also be accessed at this up-dip location.

In Ethiopia Africa Oil continues to advance plans to commence a 2D seismic program in the Rift Basin Area Block which is expected to start later this year. The company and its partners have also indicated their intent to enter the next exploration period in the South Omo Block. Due to the extensive drilling and seismic program, no additional work commitments will be required during this period. The partnership plans to evaluate the four wells drilled to date to determine if additional drilling is warranted and, if so, which portion of the block is considered most prospective.

While Africa Oil is extending its stay on the South Omo by entering the next exploration phase, it plans to exit two other blocks in Ethiopia. The company informed the Ethiopian Government and its partners that it intends to withdraw from Blocks 7 and 8 in the Somali region. Although the El Kuran-3 well did demonstrate some oil and gas potential, the company said that it does not feel the results warrant any further effort at this time due to concerns over reservoir quality and commerciality.

http://www.petroleumafrica.com/africa-oil-spuds-in-kenya-plans-ethiopia-exit/