Block 10BA covers 16,205sq km in the northwestern part of Kenya, the size of approximately 65 UK North Sea exploration blocks that includes approximately 75% of Lake Turkana.
It is located in the eastern arm of the Tertiary-age East African Rift system and is considered analogous to the Albertine rift in Uganda, where an estimated one billion barrels of reserves have been proven to date, with another 1.5 billion barrels of prospective resources.
The Lake Albert blocks are operated by Tullow Oil, and out of 36 exploration wells drilled, 35 have been successful.
The terms of the farm-out agreement are that Tullow will earn a 50% participating interest in the PSC and will assume operatorship in return for reimbursing 50% of Centric’s acquisition costs for the PSC, which total approximately $750,000.
The Kenyan government approval was one of the conditions precedent for finalizing the farm-out to Tullow.
The final condition is the settlement of the judicial review application filed against the Kenyan Ministry of Energy relating to six exploration permits granted by the ministry, including the company’s PSC covering Block 10BA.
