{"id":43231,"date":"2013-10-21T19:29:05","date_gmt":"2013-10-21T23:29:05","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=43231"},"modified":"2013-10-21T19:29:05","modified_gmt":"2013-10-21T23:29:05","slug":"big-winners-kenyas-oil-debut","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/10\/21\/big-winners-kenyas-oil-debut\/","title":{"rendered":"The Big Winners in Kenya\u2019s Oil Debut"},"content":{"rendered":"

By OilPrice.com<\/strong><\/p>\n

Kenya will start pumping its first commercial oil next year and begin exporting in 2016, but this is just the opening salvo: new discoveries in recent months and fast-track new well development make Kenya the darling of East Africa from an investor\u2019s perspective.<\/p>\n

Kenya is set to soar past Uganda, which discovered oil\u00a0much earlier,\u00a0but is\u00a0now\u00a0having a hard time getting it out of the ground and into the market. And the next five months should bring not only news of the first commercial output for Kenya, but new commercial prospects coming online.<\/p>\n

As the discoveries pile up for pioneers British\u00a0Tullow<\/a> (TLW-LSE)\u00a0and Canadian\u00a0Africa Oil<\/a> (AOI-TSXv), the plan now is to escalate development and further the pace of exploration, while a third winner in this scenario\u2014Taipan Resources<\/a> (TPN-TSX)\u2014is set to benefit enormously by owning acreage right next to the pioneers\u2019 high-reward prospects.<\/p>\n

Tullow, in partnership with Africa Oil–made the first\u00a0discovery in western Kenya just last year, and in total have discovered more than 300 million barrels\u00a0of oil equivalent resources in Kenya\u2019s South Lokichar Basin, and they are still exploring.<\/p>\n

In late September, the duo announced a fourth crude-rich discovery at\u00a0Ekales<\/a>, hitting a net oil pay of 60-100 meters. Significantly, this discovery is right between the Ngamia-1 and Twiga South-1 wells that first put Kenya on the oil map, and the reservoir properties are similar.\u00a0 Drilling success here has been 100% and this is the fourth consecutive wildcat discovery in this basin since March 2012.<\/p>\n

In the next 12 months we can expect another 12 wells to be drilled along Kenya\u2019s \u201cstring of pearls\u201d, and what investors are sure to be eyeing is the fast progress on two new wells–Bahasi and Sala–being drilled by Tullow and Africa Oil.\u00a0These wells\u2014targeting 700 million barrels between just the two of them\u2014are in eastern Kenya, and this is where Taipan is.<\/p>\n

The catalysts here for Taipan are increasing by the day.<\/p>\n

The Bahasi is a 300-million-barrel well that was spudded earlier this month and should be completed around December this year. Upon completion of Bahasi, Tullow and Africa Oil will start drilling the Sala well, which is a massive 402-million-barrel prospect.<\/p>\n

This spreads the discovery net wider, and Taipan is eagerly eyeing the results because both new wells are right next to their own Block 9 acreage, so a hit for one here means a hit for all.\u00a0\u00a0They\u2019re all targeting the same geology\u2014the Tertiary part of the Lower Cretaceous.<\/p>\n

Africa Oil and operator New African Global Energy also expect to spud the\u00a0highly prospective El Kuran<\/a>\u00a0well this month. El Kuran is just to the north of and on trend with Taipan\u2019s Block 1.\u00a0It\u2019s a low-risk prospect because there has already been a discovery and it\u2019s really about testing commerciality and flow rate.<\/p>\n

And with the 100% success rate for drilling in Northern Kenya so far, there is reason to be optimistic.<\/p>\n

For Taipan, there are plenty of other catalysts as well, including a\u00a0farm-out agreement<\/a>\u00a0earlier this month for 55% of its Block 2B with Premier Oil Investments Limited, which will cover the cost of drilling and testing its Pearl-1 prospect. The drilling campaign should be in place by the second quarter of next year.\u00a0\u00a0A lot of information on geology will come to light\u2014before Taipan drills–from the Bahasi and Sala wells.<\/p>\n

It was only in 2012 that Tullow\u00a0and Africa Oil\u00a0struck the first oil in Kenya. This makes a commercial production timetable of 2014 and export goal of 2016 an amazing success story and puts Kenya leaps and bounds ahead of its neighbors.\u00a0\u00a0With a string of successes and money pouring into the country from major oil companies\u2014over $100 million in deals have recently been announced\u2014Kenya\u2019s risk\/reward ratio is tipping heavily into investor\u2019s pockets.<\/p>\n

Source: http:\/\/oilprice.com\/Geopolitics\/Africa\/The-Big-Winners-in-Kenyas-Oil-Debut.html<\/a><\/span><\/p>\n

By. James Stafford of Oilprice.com<\/a><\/span><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By OilPrice.com Kenya will start pumping its first commercial oil next year and begin exporting in 2016, but this is just the opening salvo: new discoveries in recent months and fast-track new well development make Kenya the darling of East Africa from an investor\u2019s perspective. Kenya is set to soar past Uganda, which discovered oil\u00a0much … <\/p>\n

Continue reading “The Big Winners in Kenya\u2019s Oil Debut”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-43231","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/43231","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=43231"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/43231\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=43231"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=43231"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=43231"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}