Premier Oil withdraws from Kenya’s Block 2B

Kenya’s block 2B operator Taipan Resources has announced that its majority partner Premier Oil with 55% interest has exercised their right to withdraw from the license effective April 30th 2015.

Following the withdrawal of Premier Oil the working interests for Taipan through its Kenya-based subsidiary Lion Petroleum and Tower Resources plc in the Block will be adjusted on a pro-rata basis (Lion 66.66%, Tower 33.34%) for the remaining approximately six months of the current licence phase.

According to Taipan CEO Maxwell Birley Premier Oil has met all their commitments in the joint venture to date.

“While we are disappointed to see Premier Oil exit the block, we are appreciative of the fact that they met all their commitments to the joint venture, and proved an excellent partner through the drilling process. We would welcome the opportunity to partner with Premier Oil again in the future,” he says.

Meanwhile Taipan has announced that the Ministry of Energy, Kenya has agreed to a six month extension to the First Additional Exploration Period to 30 November 2015 in order to complete the assessment of the remaining prospectivity of Block-2B, and as a result of the ongoing legal action relating to the temporary injunction served upon Lion, Premier, and other named parties which has prevented operations over the majority of the block.

Birley says this will give the Lion and Tower time to complete their remaining technical assessments and review their strategy with respect to Block-2B.

Taipan further reports that de-mobilization efforts with the Badada-1 well are now complete, and that despite the disappointment of not locating commercial levels of hydrocarbons in the well, Badada-1 was drilled on budget and with no security or lost time incidents.

Taipan anticipates providing additional detail on its future plans in the coming weeks.