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Origin Energy Spots Oil Seepage Offshore Kenya

08-05-2008

A survey commissioned by Origin Energy showed evidence of oil seepage from the sea floor in Kenyan Blocks L8 and L9, according to Origin's partner, Pancontinental Oil & Gas NL.

The slicks in Block L8 are the largest and highest ranked in offshore Kenya and coincide with several main prospects mapped from previous seismic data, Pancontinental said in a statement.

Previous mapping of seismic data from L8 and L9 shows a number of very large geological prospects including the Mbawa prospect, which holds more than five billion barrels of oil in place and seven Tcf of gas in place.

The characteristics of some slicks identified in the survey are consistent with seepages of light oil or condensate.

The offshore blocks are covered by 3,759 kilometres (2,556 miles) of line seismic data.  Pancontinental expects to conduct further drilling to establish the size and value of any oil and gas discovery in the two offshore blocks.

Origin Energy operates the two offshore blocks after entering into a farm-in agreement for a 75 percent interest with Pancontinental in September 2006. 

Under the terms of the farm-in agreement, Origin is required to fund a seismic programme and the drilling of an exploration well in each block.