Centric Energy farms out Kenyan block to Tullow Oil

Centric Energy and Tullow Oil Kenya have completed the farm-in agreement whereby Tullow is farming-in to a 50% participating interest in Centric Energy (Kenya)'s 100% owned Production Sharing Contract (PSC) covering the Block 10BA in north-western Kenya.

Tullow has paid a closing consideration of $961,000 in respect of estimated historic costs related to acquisition of the PSC and exploration of Block 10BA, subject to a post-closing audit.

Tullow will also fund 80% of future joint venture expenditures in the block until total spending reaches $30m, after which Centric Energy will be responsible for its working interest share of future costs.

Pursuant to the farmout, Tullow will also assume operatorship of the block.

Block 10BA is situated within the East African Rift System, which is considered to be the closest geological analog to the Tertiary basins underlying Block 10BA.