FAR gets a mention in this article on "The East African"...

FAR gets a mention in this article on "The East African" website.

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Kenyan company wins Comoros oil exploration deal

By KENNEDY SENELWA Special Correspondent
Posted Saturday, April 14 2012 at 15:37

The Comoros Island has awarded an offshore oil exploration and production license to Kenyan company Bahari Resources Ltd.

Comoros Vice President Mohadji Fouad announced that the first exploration and development agreement had already been signed with the Nairobi-based company.

“We believe our country represents one of the last prospective offshore frontiers for oil and gas and are delighted to see the commitment Bahari have made,” he said.

The deal between the two parties is for the offshore area situated on the western part of country, at latitudes 10 degrees to 13 degrees South and longitude 43 degrees East.

The area is adjacent to offshore Area 1 and Area 4 of Mozambique’s Rovuma basin where ENI of Italy and Anadarko Petroleum Corporation have recently discovered vast quantities of natural gas.

Bahari will carry out seismic survey of potential leads and drilling programmes in its area besides study for government for entire Comoros.

Mr Fouad, who is also the Minister of Energy and Mines, said the report will be used to demarcate more exploration blocks and a licensing round is likely in two years to enable prospecting firms to competitively bid for acreage.

“It is a new area. We are waiting for the legislation. I cannot say how many blocks will be created,” he said during the Eastern Africa Oil, Gas & Energy Week in Nairobi.

Bahari will fund a government programme to develop Comoros internal expertise on petroleum matters including management and legislation.

Comoros hopes by 2013, a Petroleum Code to govern all aspects of exploration and production, shall have been formulated.

Meanwhile Australia Stock Exchange said FAR Ltd plans to raise $15.04 million to fund exploration activities in Kenya’s offshore oil blocks L6 and L9 in Lamu basin.

FAR is issuing 280 million shares to members of the public to raise $12.04 million. About 70 million shares are also being issued to shareholders registered at March 28 to raise $3 million.

The share purchase, which plans to raise $3 million, opened on April 2 and was expected to closes on April 13.

The funds will allow FAR to maintain its interest in blocks L6 and L9.

Dubai-based Zarara has also signed an agreement with Sohi Gas Dodori Ltd and Sohi Gas Lamu Ltd for exploration blocks L13 and L14 in Lamu basin.
Zarara will be in charge of exploration activities in the two blocks.

Sohi’s director Don Rarioh said Zarara is required to reimburse cost incurred in the past with regard to the acreage under confidentiality clause signed by both parties and work on the two blocks is set to intensify.

“The Bureau of Geophysical Prospecting of China will start carrying out seismic survey in April 2012 to map out leads for potential oil and gas deposits for well drilling in future,” said Zarara’s country manager Peter Nduru.

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http://www.theeastafrican.co.ke/business/Kenyan+company+wins+Comoros+oil+exploration+deal+/-/2560/1386360/-/o1gm0r/-/