Zarara Oil and Gas Receives 18 month Extension in Kenya’s Blocks L4 & L13

Kenya’s Block L4 & L13 operator Zarara Oil and Gas has said it has been granted an 18 month licence extension through to June 2017, to the First Additional Exploration Period on both of the production sharing contracts.

Zarara Oil and Gas which is a wholly owned subsidiary of Midway Resources International (MRI) says The extensions will enable  it complete its preparation and drilling of Pate-2 well on the Pate-1 natural gas discovery which reached a total depth of 4188 meters by Shell/BP in Lamu County in 1971.

Zarara through its representative had earlier told OilNews it planned the drill a well in Block L4 in Q2 2016 from analysis of the survey data arising from 383 line kms 2D survey over the Pate Prospect which identified nine additional anomalies or leads on Blocks L4 & L13 which the company also has interest.

Zarara’s Block L4 & L13 marked in map under Block L3 colored orange

Zarara says the extensions will also allow it to acquire additional seismic data elsewhere on the licences.

The seismic acquisition program will be focused on appraising a significant number of leads identified by a comprehensive aeromagnetic survey over the two blocks completed in 2013.

Midway Resources adds that it aims to complete the Pate-2 as a producing well which would undergo extended well testing to supply temporary electric power generating units.

“Zarara’s drilling strategy is to fully appraise the Pate natural gas discovery and then, in partnership with leading electrical power generation partners, undertake a phased development of up to 1,000MW of electricity generation capacity nearby at Port Lamu, the proposed southern terminal of the LAPPSET Project. This will then be followed by the first phase of gas powered generation from Pate, assuming successful appraisal of the gas resource by Pate-2 and the follow-on development wells.,” the company said in a statement to shareholders in the London Stock Exchange.

Zarara Oil and Gas  partners are Swiss Oil Holdings Ltd (15%) and the balance of 10% being a carried interest of the Government of Kenya.