Houston based exploration company Rift Energy has told its shareholders that it is ready to commence drilling operations even as the company continues to evaluate potential acquisitions throughout east Africa.
Rift Energy is also in the process of completing the Environmental Impact Assessments (EIA) that are required for each of its four drilling locations.
“After completing the EIA and securing additional financing, we will initiate our exploratory drilling program,” Fred Zaziski, President and CEO says.
The drilling plans follow the completion of a 724 line KM 2D seismic program over key areas of the approximately 9,000 KM2 Block L19 which identified over 21 leads including four that have developed into drill ready prospects (two oil and two gas).
Resource Reserve Estimates in the preliminary resource reserve estimates for the top ten leads (including the four drill-ready prospects) include a mid-range recoverable estimate of 856 MMBLS oil and 10.425 TCF gas.
The company says it hopes to maximize from the block’s close proximity to markets in Mombasa for oil and/or gas in the event of a commercial oil or gas discovery.
“As such, any oil or gas discovery on Block L19 would not be stranded,” Zaziski adds.
On the planned farm-out the company says it is currently in discussions with various investors and industry players in order to provide the capital to fully fund its exploration efforts on the block.
The new investor will help the company its second exploration phase entered in Q3 2014 after meeting or exceeding all contractual requirements of the initial two-year exploration program.
Under the additional two-year exploration program on Block L19 Rift Energy is now obligated to either acquire 500 KM of 3D seismic or drill an exploration well during the next two years.
The initial two-year exploration program required Rift Energy to acquire at least 1,000 KM of gravity and magnetic data, shoot at least 500 KM of 2D seismic data and to spend at least US$100,000 on community projects.
Elsewhere Rift says it continues to advance discussions with potential farm-in partners and host governments covering other opportunities in East Africa, which the company says it believes have the potential to significantly enhance shareholder value.
The company also has sites on acquiring additional exploration blocks in Uganda where it says there is significant reserve potential.