Taipan Resources Inc. Announces Farmout Agreement with Premier Oil plc for
Block 2B Onshore Kenya
NAIROBI, KENYA -- (Marketwired) -- 10/15/13 -- Taipan Resources Inc.
("Taipan" or the "Company") (TSX VENTURE:TPN), through its
wholly-owned Kenya-based subsidiary Lion Petroleum Corp. ("Lion") is
pleased to announce the signing of a binding farmout agreement with
Premier Oil Investments Limited ("Premier"), a subsidiary of Premier
Oil plc (LSE:PMO) whereby Premier will acquire a 55% participating
interest in Block 2B onshore Kenya. Taipan will retain a 45% interest
in Block 2B. The Company holds its interest in Block 2B pursuant to a
production sharing contract ("PSC") with the Government of the
Republic of Kenya.
The principal terms of the farmout agreement are as follows:
-- Premier will pay Taipan's working interest share of the cost of drilling
and testing the Pearl-1 prospect and future costs on Block 2B up to a
cap of US$ 13.275 million in addition to its working interest share of
costs. The total work programme required under the PSC for the First
Additional Exploration Period (as defined in the PSC) is estimated at
-- Premier will provide guarantees for the minimum work and expenditure
obligations required under the PSC for the First Additional Exploration
Period on Block 2B of US$13.0 million.
-- Premier will pay Lion US$1 million as a reimbursement for back costs.
Lion will retain operatorship of Block 2B during the exploration
phase with Premier having the right to assume operatorship of any
Mr. Maxwell Birley CEO commented, "We look forward to working with
Premier Oil, a company with a strong track record of exploration and
development success. The Pearl-1 exploration well is targeting a
Tertiary prospect similar to Tullow's Ngamia, Twiga and Ekales
discoveries. The Company also has multiple prospects similar to
Tullow's Eutko discovery. The Anza Basin is one of the largest
Tertiary-age rift-basins of the East African Rift systems that
together contain multi-billion barrel oil discoveries. We believe
that the 'sweet spot' of the Anza Basin is located on Block 2B."
Completion of the farmout is subject to certain legal conditions,
financial audits and other approva
About Premier Oil plc
Premier Oil plc (LSE:PMO) is a leading FTSE 250 independent
exploration and production company with interests in the North Sea,
South East Asia, the Middle East, Africa, Pakistan and the Falkland
Islands. Its portfolio of producing assets delivered production of
58,600 boepd in the first half of this year, and it has various
projects in the development phase which should increase production to
over 100,000 boepd in the medium-term. Premier became active in Kenya
in 2011 with the signing of two PSCs for offshore exploration blocks
L10A and L10B.
About Taipan Resources Inc.
Taipan Resources Inc. (TSX VENTURE:TPN) is an independent,
Africa-focused oil exploration company with interests in Block 1 and
Block 2B onshore Kenya through its wholly owned subsidiary Lion
After the farmout, Taipan will hold a 45% working interest in Block
2B (1.35 million acres / 5,464 km2). The Company's 20% working
interest in Block 1 (5.497 million acres / 22,246 km2) is operated by
East Africa Exploration (Kenya) Ltd, a subsidiary of Afren plc.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Certain statements contained in this release may be forward-looking
statements. Forward-looking are not historical facts and involve
risks and uncertainties that could cause actual results to differ
materially from the targeted results. Forward-looking statements are
often identified by terms such as "will", "may", "should",
"anticipate", "expects" and similar expressions. All statements other
than statements of historical fact included in this release,
including, without limitation, statements regarding the completion of
the farmout with Premier and the potential of prospects located
within Block 2B, are forward-looking statements that involve risks
and uncertainties. There can be no assurance that such statements
will prove to be accurate and actual results and future events could
differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ
materially from Taipan's expectations include the satisfaction of
conditions contained in the farmout agreement, receipt of all
necessary government approvals, the results of drilling and
exploration on Block 2B, as well risks detailed from time to time in
the filings made by Taipan with Canadian securities regulators. As a
result, Taipan cannot guarantee that any forward-looking statement
will materialize and the reader is cautioned not to place undue
reliance on any forward-looking information. Such information,
although considered reasonable by management at the time of
preparation, may prove to be incorrect and actual results may differ
materially from those anticipated. Forward-looking statements
contained in this news release are expressly qualified by this
cautionary statement. The forward-looking statements contained in
this news release are made as of the date of this news release and
Taipan will only update or revise publicly any of the included
forward-looking statements as expressly required by Canadian
Taipan Resources Inc.
Chief Executive Officer
+254 705 643 745
Taipan Resources Inc.
CFO and Director
+1 604 336 3193
For Investor Relations Contact:
Kin Communications Inc.
604-684-6730 or 1-866-684-6730
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