Tower Resources more hopeful of oil find rather than gas in Kenya’s Block 2B

Tower Resources is more hopeful of an oil find unlike a gas find in Kenya;s block 2B Badada-1 well exploration well according to a recent report by the company.

In the report Tower Resources  says the Badada-1 well is planned to be drilled to a total depth of 3,500 metres and which is expected to spud at the end of 2014/early 2015 targets target Tertiary or late Cretaceous source rocks mature for oil  rather than gas.

This would make the rock structure more similar to those in the Lokichar basin where Africa Oil and Tullow have already successfully discovered oil rather than the structure in Block 9 where Africa Oil and Marathon Oil recently discovered gas at the Sala-1 well located just 60 kilometers from the Badada-1 well.

Tower also confirms that its own own prospect mapping confirmed a range of resource estimates straddling the figures that the Operator (Lion Petroleum Corporation a wholly owned subsidiary of Taipan Resources) has previously published of 1,593mmboe based on 19 exploration leads on Block 2B.

To this end the company is targeting gross mean unrisked prospective resources of 251mmboe according to figures Sproule International Limited in February 2014.

Currently the report says the operator, Lion Petroleum Corp, is currently reviewing rig options and ordering long lead items, with expected gross well costs of US$20 to US$25 million.

Taipan Resources through its subsidiary Lion Petroleum holds a 30% interest and is the operator of the licence, Tower Resources holds 15% interest while the remainder is held by Premier Oil, which farmed in for a 55% interest in December 2013. Tower’s farm-in was completed on 3 June 2014.