Taipan Targeting 1.6 Billion Barrels of Oil in Kenya

Taipan Resources has announced that an updated independent assessment of the Company’s prospective resources on Block 2B has been completed by Sproule International Limited (“Sproule”). The independent assessment was carried out in accordance with the standards established by the Canadian Securities Administrators in National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. The effective date of the report is December 31, 2013.

The total estimated Mean Gross Unrisked Prospective Resources on Block 2B in the report has increased by 388 percent to 1,593 MMBOE from 410.4 MMBOE.

The Pearl-1 prospect, that is expected to be drilled later this year, has been estimated by Sproule to have Mean Gross Unrisked Prospective Resources of 251 MMBOE.

The total estimated Mean Gross Unrisked Prospective Resources on Block 2B is based on 19 exploration leads as summarized in the table below. The estimated Mean Gross Unrisked Prospective Resources for the top six leads of Block 2B (Leads 1, 2, 3, 4, 5, and 8) total 960 MMBOE.

Premier Oil plc is carrying Taipan through the cost of the work program for the First Additional Exploration Period on Block 2B. This includes the drilling and testing of the Pearl-1 prospect. Taipan holds a 45% interest in Block 2B and is the operator during the exploration phase with Premier having the right to assume operatorship of any development.

Taipan Resources is the fourth largest acreage holder onshore Kenya (6.8 million acres/ 27,712 square kilometres) with multiple exploration plays in multiple basins, and estimated total net prospective resources of 328 million barrels of oil equivalent. Management has a track record of repeated exploration success, having discovered over 3.75 billion barrels of oil equivalent in frontier regions.

Author: Samuel Kamau Mbote