Business
Kenya Drill Rig
Kenya Drill Rig.
About this update from Geo Exploration Limited
[{"type":"text","content":"\n Global Petroleum Ltd\n16 March 2006\n\n\n Global Petroleum Limited\n\n ABN 68 064 120 896\n\n\n Global Petroleum announces first oil exploration drilling in offshore Kenya\n\n\n\nGlobal Petroleum Limited announces the decision of the Woodside-Dana-Global\nPetroleum Joint Venture to drill the first oil exploration well in offshore\nKenya.\n\n\n'Global is extremely pleased to have secured a firm drilling plan and proposed\ndate for the commencement of exploration drilling in this under-explored\nprovince,' Global Chairman Dr John Armstrong said today.\n\n\nThe joint venture (Woodside Energy (Kenya) Pty Ltd earning 50% and operator,\nDana Petroleum 30% and Global 20%) has scheduled up to two wells to be drilled\nin Blocks L-5 and L-7 in offshore Kenya in the last quarter of 2006. The actual\nonset of drilling operations will be dependant on the delivery date of the rig\nto Kenya, currently scheduled for October this year, and further studies of\nmet-ocean conditions. The Joint Venture has the option to drill a second well\nimmediately following the first well or subsequently when the results of the\nfirst well are assessed.\n\n\nThe costs associated with Global's 20% equity in L-5 and L-7 are carried for all\nactivities including the drilling of the first well in each permit. Woodside\nonly earns its equity when these two wells are drilled.\n\nKenya is a key part of the Global portfolio which also includes oil and gas\nexploration interests in the Falkland Islands (through the Company's 14%\nshareholding in Falkland Oil and Gas Limited) and Ireland and Malta.\n\nDr Armstrong said that the Kenya acreage has the potential to become a\nsignificant oil region:\n\n • Woodside currently regards Kenya as having 'multiple large structural\n prospects' (November 2005 Woodside presentation);\n • Woodside's mapping and seismic surveys have identified more than 30\n prospects and leads, a number of which are each capable of holding several\n hundred million to a billion barrels of recoverable oil;\n • The first prospect to be drilled is likely to be Pomboo in L-5 and the\n second possibly Sokwe in L-7;\n • Both prospects have reservoir objectives in rocks of Cretaceous and\n Tertiary age which elsewhere in the world contain a large proportion of the\n world's known oil and gas reserves;\n\nDrilling will be undertaken using the deepw...