BLOCK L9 PSC, OFFSHORE KENYA, SIGNED IN NAIROBI
Avana Petroleum Limited (“Avana”) is pleased to announce that the Production Sharing Contract (PSC) for Block L9 in the Lamu Basin, offshore Kenya, was signed in Nairobi on May 17th, 2011 with the Kenyan Ministry of Energy. Avana holds a 10% working interest, with Dominion Petroleum Limited holding a 60% working interest and operatorship and Flow Energy Limited holding a 30% working interest.
The work commitment of the initial two year exploration period of the PSC entails reprocessing 2,500 km of 2D seismic data, the carrying out of block-wide G&G studies and the acquisition of 500 km2 of 3D seismic data. This will incur a minimum gross expenditure of $6.15mm. Following this initial two year period, Avana, and its partners can enter the second two-year period by committing to drill an exploration well.
With many geological similarities with the offshore Tanzanian plays that have recently been drilled with considerable success, Block L9 was amongst the last available and most attractive new licensing opportunities in the East African offshore.
Sam Malin, Chief Executive of Avana, commented:
“The signing of Kenya offshore block L9 in Kenya builds on our existing interests in the East African/Western Indian Ocean region and represents an important step in the growth of our company. Avana looks forward to working with its partners Dominion Petroleum and Flow Energy as well as the Kenyan Ministry of Energy and other relevant Kenyan counterparts to implement a significant work program on L9 to boost understanding of this block’s potential and to commence steps towards its development.”
For further details please contact:
Sam Malin, Director, Avana Petroleum Limited
or visit our website: www.avanapetroleum.com