Gippsland Offshore, operator of the L-6 joint venture won approval from the Ministry of Energy in Kenya for the next phase of the PSC committing to 2 wells in four years. The amended terms of the PSC incorporating gas development terms and other changes has been agreed and the L-6 JV is planning for the next phase of exploration. To date, 7 prospects have been mapped in the L-6 block. These prospects have the potential after early risking to house approximately 3TCF of gas and Gippsland Offshore is planning to acquire additional onshore seismic data to better define the closure on the onshore Kudu prospect prior to drilling.

There are good indications of hydrocarbons in the permit with 2 wells having flowed gas and a number of wells with gas shows(and offshore slick mapping shows the presence of natural oil seeps). The prospects in the north are primarily gas and presence of oil is more likely in the southern prospects...more...