Worldwide Energy News - Article

This article is extracted from International Oil Letter, Vol 22 issue 51 published 25 December 2006.

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Origin Energy starts major 3D survey in the Lamu Basin

Origin Energy has started a 3,200km 2D seismic program in blocks L-8 and L-9 in the Lamu Basin on acreage not far from Block L-5 in which Woodside is currently drilling its first well, Pomboo 1. Previously, Deeds of Variation were signed for these two blocks that formalized changes in future work program obligations for the First Additional Period and Second Additional Period of the contracts subsequent to which a farm-in agreement was entered into between Pancontinental, Afrex and Origin. Origin now holds a 75% participating interest in the contracts and an obligation to fully fund the acquisition of 2D seismic in each block in the First Additional Period, which ends on 21 October 2007, at a combined minimum cost of US$ 4 million. If Origin decides to enter the second period, it must fully fund the drilling of an exploration well to a minimum depth of 3,000m before 22 October 2008 in Block L-8 and before 22 October 2009 in Block L-9. According to Pancontinental, over 40 leads have been mapped in blocks L-8 and L-9. Nine have resource potential for over 500 MMbo, while four have billion-barrel potential. Tetere of Eocene age and M'bawa of Paleocene age (potential of aboutt 1,500 MMbo recoverable) are part of the leads located in Block L-8. The survey is due to complete in February 2007 at which time the crew is expected to start a 2D survey in Block L-6 for Gippsland Offshore Petroleum.

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