LONDON, March 24, 2011 /PRNewswire/ --
- ("Avana Petroleum" or "Avana")
Avana Petroleum is pleased to announce the award of Offshore Block L9 (the "Block") in the Lamu Basin, Kenya. Avana will hold a 10% interest in the L9 Joint Venture with 60% being held by Dominion Petroleum Limited ("Dominion"), which will be operator, and 30% being held by Flow Energy Limited ("Flow").
Last week, a Heads of Agreement was executed with the Government of the Republic of Kenya. This defines the terms of the Production Sharing Contract ("PSC") for the Block, the award of which is subject to the signature of the PSC with Kenya's Ministry of Energy. Signing is currently set for April 2011 in Nairobi.
Block L9 is amongst the last available and most attractive new licensing opportunities in the East African offshore. The block has many geological similarities with the offshore Tanzanian plays that have recently been drilled with considerable success.
One well exists on block L9, Simba-1, which was drilled in 1979 and encountered gas shows in the Tertiary and upper Cretaceous. A working hydrocarbon system in the Lamu basin is evidenced both by the results of Simba-1 and offshore oil seeps identified to the north of block L9.
Sam Malin, Director of Avana Petroleum commented:
"The prospectivity of the Lamu Basin is significant and the award of Block L9 complements our existing regional interests in the East African Margin/Western Indian Ocean region.
The award of L9 to Avana and its partners is the culmination of a highly competitive bid process involving strong high quality competition and reflects the excellent contacts, presence and track record that Avana and its partners have built in the region and the strength of Flow's track record and contacts in Kenya.
Avana looks forward to working with its partners, Dominion and Flow, and with the Kenyan Ministry of Energy and other relevant Kenyan counterparts to improve the understanding of the recognised hydrocarbon potential of Block L9 and to work towards transforming this potential into production."
The Initial Exploration Period of the PSC is for two years from signature and entails a gross minimum work commitment of $6.15 mn inclusive of a requirement to acquire 500 km2 3D seismic data.
After the Initial Exploration Period, there is an option to relinquish the PSC or commit to a further two year exploration period with an obligation to drill one well during that further period.
Avana Petroleum Limited
Avana Petroleum Limited, incorporated in the Isle of Man in 2007, is an independent Oil and Gas exploration company whose area of interest is the East African Margin/Western Indian Ocean region. Avana strategically recognised and selected this region from the outset as it is considered as highly prospective and one of the last underdeveloped hydrocarbon frontiers relatively unexploited on a commercial scale.
Key members of the Avana team have been active in the region since the early 1990s. Consequently, Avana has developed a profound regional technical understanding as well as excellent relations with the regional business communities and at all levels of governments.
In addition to Kenyan Block L9, Avana's assets include a 25% interest in approximately 15,000 km2 of prospective acreage in the Seychelles on which it and its partner have undertaken extensive work to date as well as a 100% interest in licenses in the Sambaina shale oil area of onshore Madagascar.
For further details please contact: Sam Malin, Director, Avana Petroleum Limited Tel: +44-203-178-5001 E-mail: email@example.com or visit our Website at: http://www.avanapetroleum.com
SOURCE Avana Petroleum Limited