FAR SECURES ADDITIONAL ACREAGE OFFSHORE KENYAThe Kenyan...

FAR SECURES ADDITIONAL ACREAGE OFFSHORE KENYA
The Kenyan Government has confirmed a 60% expansion of FAR Ltd’s (ASX:FAR) highly prospective L6 exploration permit off the coast of Kenya. This additional area, which had previously been relinquished and has now been re-instated, increases the total permit area to 5,010 km2.
From recently acquired processed 3D seismic data and earlier 2D seismic data, both of which partially cover this new acreage, FAR has identified a number of play types and prospects in the L6 permit. Significantly FAR has interpreted a new play type, the Miocene carbonate reef play, which extends into the newly awarded acreage.
FAR estimates that the new acreage has prospective resources of 773 million barrels of oil or in a gas only success case, 2,141 billion cubic feet of gas (un-risked best estimate, 100% basis). This brings the prospective resource estimate for the total L6 permit to 3,962 million barrels oil or in a gas only success case, 10,689 billion cubic feet (unrisked, best estimate, 100% basis).
A map showing the previous and new L6 permit areas and leads and prospects is set out below.
FAR’s Managing Director Cath Norman said,
“Being the longest standing operator of exploration acreage in the Kenyan Lamu basin, this award speaks to our good standing in the country
With our increased acreage in L6, in conjunction with our existing L9 permit, FAR has now established
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a significant acreage position over the carbonate reef play, which a number of companies have now recognised as having great potential. Being the first company to have acquired modern 3D data over the carbonate reef play, FAR shareholders are well positioned to benefit from this potential.
Kenya
FAR holds 60% and 30% interests respectively in the L6 and L9 blocks in the Lamu Basin offshore Kenya. These lie north of recent, world-scale, natural gas discoveries totalling around 100 trillion cubic feet off the coasts of Mozambique and Tanzania.
The first well in the Lamu Basin, the Mbawa-1 well, was drilled last quarter by Apache in Block L8 (located between FAR’s L6 and L9 permits). The Mbawa-1 well, which encountered 52 metres of net gas pay and had possible indications of the presence of oil, has demonstrated the existence of a working hydrocarbon system in the Lamu Basin.
Nine wells planned in the Lamu Basin’s in the next 18 months reflect the intense international interest in the region. Anadarko Corporation has recently spudded two wells, one in Block 11A (Kiboko-1) and the other in Block 7 (Kubwa-1).
L6
From the recently received processed 3D seismic data, combined with studies of existing 2D data, FAR assessed combined prospective resources for the expanded L6 block (as set out in its release of 27 February 2013) of 3.7 billion barrels of oil or 10.2 trillion cubic feet of gas (un-risked, best estimate, 100% basis). From the 3D data FAR has matured three prospects (Tembo, Kifaru and Kifaru
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West) in the Kenya L6 block which have prospective resources of 327, 178 and 130 million barrels of oil (un-risked best estimate, 100% basis) respectively, or in a gas only success case, 807, 517 and 388 billion cubic feet of gas.
The first exploration well location on L6 will be selected shortly after the fully processed 3D data is received, which is expected in April 2013. Well planning activities for drilling have already commenced. FAR has started a farm in initiative to select a suitable partner to fund and potentially operate the exploration well. FAR has fulfilled all the financial obligations on this permit.
L9
FAR also holds a 30% interest in the highly sought after offshore Block L9, operated by Ophir. A farm in initiative has been initiated on this permit.