Pancontinental Oil and Gas Company has announced plans to accelerate offshore oil exploration activities in block L10A and L10B in Lamu basin.
The company which owns 15 per cent share in each of the blocks indicated that drilling targets will be identified before the end of this year. A programme on its website shows that two wells will be drilled next year in the first and third quarters respectively.
The Australian company said interpretation of 3D seismic data from Block L8 for Nanaa area will be complete within this year. Pancontinental, with joint venture partners Apache Corporation, Origin Energy and Tullow Oil, struck 50.2 metres of net gas gas pay at their first well in block L8 named Mbawa1.
The well was however plugged after it was determined that the gas find was not of commercial value. Analysis for Mbawa1 prospect are ongoing with an aim of planning further drilling to confirm the potential within the block.
The discovery raised expectations of finding oil or gas in the Lamu basin blocks due to geological similarities across the blocks. Pancontinental announced on its website that it intends to offload part of its 40 per cent shareholding in the block L6 north of the Mbawa1 prospect next year to raise capital for exploration onshore in the same block.
FAR Limited of Australia which owns 60 per cent of the block 6 engages in the exploration and production of oil and gas, while Pancontinental majors in exploration. The company was formerly known as First Australian Resources Limited and changed its name to FAR Limited in 2010.