Kenyan Gov’t Expands FAR Ltd’s L6 Offshore Licence

The Kenyan Government has confirmed a 60% expansion of FAR Ltd’s 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).

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 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.

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.

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  of 3.7 billion barrels of oil or 10.2 trillion cubic feet of gas (un-risked, best  estimate, 100% basis).