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Pancontinental Oil & Gas Discovers Natural Gas Offshore Kenya at Mbawa - 1 Well
Apache Corp has discovered natural gas off the coast of Kenya in its joint venture with Pancontinental Oil & Gas Mbawa-1 exploration well located offshore Kenya. They hit a net gas column of about 52 meters. The Mbawa-1 well has been drilled to a depth of 2,553 meters.
Pancontinental Oil & Gas, an Australian explorer focused on East Africa, surged the most in 19 years in Sydney trading after its venture with Apache Corp. recorded a natural-gas discovery off the coast of Kenya.
Pancontinental shares  increased as much as 70 per cent to 19.5 cents, the biggest gain since July 1, 1993, while the S&P/ASX 200 Index rose as much as 0.4 per cent. The shares traded 60 per cent higher in recent trading.
 
“It is the first ever substantive hydrocarbon discovery offshore Kenya,” Barry Rushworth, Pancontinental's chief executive officer, said in the statement.
 
The well will be drilled to a depth of 3,275 meters. A secondary exploration target lies above the planned total depth, Pancontinental said. Apache owns 50% of the joint venture while Australia's Origin Energy Ltd owns 20%, Pancontinental owns 15% and Tullow Oil PLC owns 15%.
 
 
 
Statement From Pancontinental Website:
 
MBAWA 1 – FIRST OFFSHORE KENYA GAS DISCOVERY UNLOCKS
NEW HYDROCARBON PROVINCE
~ 52 net metres (~170ft) of natural gas pay
Pancontinental Oil & Gas NL (“Pancontinental”) is pleased to announce a significant gas
discovery in the Mbawa 1 exploration well in the L8 licence area offshore Kenya. Drilling is now
continuing towards a deeper exploration target.
HIGHLIGHTS
* First ever substantive hydrocarbon discovery offshore Kenya
* Approximately 52 net metres (~170 feet) of natural gas pay encountered so far
* Drilling has recommenced towards a deeper exploration target
The Mbawa 1 well has encountered approximately 52 net metres (approx. 170 feet) of natural
gas pay in porous Cretaceous sandstones.
The Mbawa 1 exploration well was drilled to a depth of 2,553m RT (below the drill floor), at
which point wireline logs, fluid samples and sidewall cores were acquired from the well.
Reservoir and fluid parameters will become available as logs and sample analyses are
completed.
Drilling has recommenced towards the planned TD of 3,275m RT. A secondary exploration
target lies above the planned TD.
Barry Rushworth, CEO and Director of Pancontinental said:
 
“While we have not finished operations in Mbawa 1, this gas discovery is very promising and it is
the first ever substantive hydrocarbon discovery offshore Kenya. We are delighted to prove that
there is a working hydrocarbon system offshore Kenya. Further work continues to evaluate the
size of the discovery.
We thank the Government of Kenya for its cooperation and support in achieving this very
positive initial outcome for the country of Kenya, for the L8 joint venture and for Pancontinental.
With drilling continuing to a deeper exploration target, these interim results may be the first part
of the story in this well, and they are certainly just the beginning of the main story of oil and gas
exploration offshore Kenya.”
 
 PANCONTINENTAL OIL & GAS NL
ACN 003 029 543 ASX : PCL
Ground Floor P O Box 8260 Tel: (61 8) 9227 3220
288 Stirling Street, Perth Perth Business Centre Fax: (61 8) 9227 3211
Western Australia 6000 Western Australia 6849 Email: info@pancon.com.au
Web: www.pancon.com.au
Figure 1: Pancontinental’s Projects Offshore Kenya (L6, L8, L10A, L10B)
Additional information about Mbawa is available in previous reports issued by Pancontinental
and available on the company’s website www.pancon.com.au
The Kenya L8 Joint Venture consortium consists of-
Apache Corporation (Operator) 50%
Origin Energy Limited 20%
Pancontinental Oil & Gas NL 15%*
Tullow Kenya B.V. 15%
*Pancontinental’s 15% interest is “free-carried” through Mbawa drilling by Tullow Oil plc up to a
“cap” of US$ 9 million (as reduced by other exploration expenditure). After the first earning phase
Tullow has an option to earn a further 5% by providing funding on Pancontinental’s behalf to a
cap of US$ 6 million in any second well.
Pancontinental’s website is www.pancon.com.au/
Yours sincerely for and on behalf of
Pancontinental Oil & Gas NL
Barry Rushworth, CEO and Director
The summary report on the oil and gas projects is based on information compiled by Mr R B Rushworth, BSc,
MAAPG, MPESGB, MPESA, Chief Executive Officer of Pancontinental Oil & Gas NL. Mr Rushworth has the relevant
degree in geology and has been practising petroleum geology for more than 30 years.
Mr Rushworth is a Director of Pancontinental Oil & Gas NL and has consented in writing to the inclusion of the
information stated in the form and context in which it appears.
 
 
 
 
 
 
Tags:Pancontinental Oil & Gas Discovers Natural Gas Offshore Kenya at Mbawa - 1 Well
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afro08
Johannesburg
South Africa
Thats awesome!! Good for Kenya
Hope the Govt makes good use of it.
Reply    Favorite    Flag as Abusive    Posted at: 9/9/2012 8:46:42 PM
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