Centric Energy and Tullow Oil have executed definitive farm-in and joint operating agreements whereby Tullow will farm-in to a 50% participating interest in Centric Energy's 100% owned production sharing contract covering Block 10BA in north-western Kenya.
The closing of the farm-in is conditional upon the approval of the Kenyan government and satisfaction of conditions precedent, which are expected to be completed within 30 days.
In addition to the Kenyan government’s approval, another condition precedent to the closing of the farm-in is the resolution of a judicial review application filed against Kenyan Ministry of Energy relating to certain exploration permits granted by the ministry, including Centric Energy’s PSC.
Block 10BA is located within the East African Rift System that is experiencing increasing exploration interest and significant recent success, most notably in the Albertine rift in Uganda, 660km to the west, which is considered to be the closest geological analog to the Tertiary basins underlying Block 10BA.
Centric Energy president and CEO Alec Robinson said that Tullow’s success and expertise in a similar geological setting in Uganda will ensure that Block 10BA is explored using modern exploration technology and in accordance with recognized international environmental standards and principles.
"Centric Energy intends to participate fully with Tullow in the exploration program," Robinson said.