Canadian, UK firms finalise Kenyan oil blocks buyout deal

Canadian oil and gas firm Octant Energy says it has completed a deal to buy Kenyan oil blocks owned by former London-listed Afren Oil located in Lamu and Mandera.
The firm said this paves the way for exploration drilling to soon start in the basins.

“I am extremely happy to be returning to these assets,” said Rick Schmitt, CEO and president of Octant Energy.

“We look forward to the potential of exploration drilling in Kenya’s world class basins and to follow the exploration success other companies have had there.”

In late 2015, the Canadian firm agreed a deal to acquire the “drill ready” assets from subsidiaries of Afren Plc via administrators.

Mr Schmitt is familiar with the assets as they were part of the business he sold to Afren back in 2010 when he run energy firm Black Marlin.

“In the period since Afren acquired these assets from Black Marlin, the environment in Kenya has been transformed by the first commercial oil discoveries. Moreover, information from neighbouring operators has provided only encouragement,” he said.

At block L17/L18, which is 100 per cent owned, Octant aims to sink a well as soon as possible. The block lies both onshore and offshore in the Lamu coastal basin, covering an area of around 4,905 square kilometres.

The second asset — Block 1 -  lies on the  western margin of the Mandera-Lugh basin and consists of 22,250 square kilometres with 1900km of 2D seismic already completed.

Octant will operate this block with an 80 per cent working interest and will restart exploration with a small 2D seismic survey before moving to drill the first exploration well. Octant has also entered into a purchase and sale agreement with Afren for its 74 per cent operating interest in the Tanga Block in Tanzania.