Taipan Resources Inc. Farms Out 15% of Block 2B Kenya to Tower Resources
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/09/14 -- Taipan
Resources Inc. ("Taipan") (TSX VENTURE: TPN), through its wholly
owned Kenya-based subsidiary Lion Petroleum Corp., has signed a
binding farm-out agreement with Tower Resources (Kenya) Limited, a
subsidiary of AIM-listed Tower Resources plc (LN: TRP) ("Tower"),
whereby Tower will acquire a 15-per-cent participating interest in
Block 2B onshore Kenya. Taipan will retain a 30-per-cent operated
interest in Block 2B.
The principal terms of the farm-out agreement are as follows:
-- Tower will pay to Taipan US$4.5-million in cash at completion;
-- Tower will issue to Taipan 9-million shares in Tower Resources Plc in
two tranches (the "Farm-In-Shares), 50% at completion and 50% three
months following completion;
-- Tower will make a US$1.0-million payment to Taipan conditional upon the
spud of a second well in Block 2B;
-- Completion is conditional solely on approval from Premier Oil
-- Tower will, on and from the effective date of transfer, pay its
participating interest share of costs incurred in conducting joint
operations as per the provision of the joint operating agreement, the
initial phase of which, are estimated to cost gross US$29.5 million;
-- Tower will provide guarantees for its share of the minimum work and
expenditure obligations required under the PSC for Block 2B;
Taipan, is presently preparing to drill the Badada Prospect on Block 2B
in Kenya. The Badada prospect has been independently estimated by
Sproule International Limited ("Sproule") to have Mean Gross Unrisked
Prospective Resources of 251 MMBOE and High (P10) Estimate Gross
Unrisked Prospective Resources of 498 MMBOE. The total estimated Mean
Gross Unrisked Prospective Resources on Block 2B is 1,593 MMBOE based
on 19 exploration leads(1).
Taipan, through its subsidiary Lion Petroleum will retain
operatorship of Block 2B during the exploration phase.
Maxwell Birley, Chief Executive Officer, commented: "We have further
de-risked our prospect in Block 2B with this farm out to Tower. The
farm out to Tower is being completed at a favorable premium to the
farm down to Premier announced in December of last year, and is
reflective of the increased sentiment towards the value of our
acreage in Block 2B. Between this farm down and the recent private
placement, Taipan is now fully-funded and exposed to the drilling of
a well on each of Block 1 and Block 2B in 2014. We have now set our
sights not only on the drilling of these two exciting targets, but
also on other sub-Saharan assets which will allow us to expand our
portfolio of exploration assets in 2015 and beyond".
1. Sproule completed an updated independent assessment of the
Company's prospective resources on Block 2B with an effective dated
of December 31, 2013. The independent assessment was carried out in
accordance with the standards established by the Canadian Securities
Administrators in National Instrument 51-101 Standards of Disclosure
for Oil and Gas Activities.
About Tower Resources plc
Tower Resources plc (LSE: TRP) is an AIM-listed, London-based
independent oil and gas exploration company with a regional focus on
The Company holds a 30% working interest in a license comprising
three Blocks offshore Namibia and a 50% interest in three contiquous
licenses, onshore and offshore, in the Sahawari Democratic Republic.
The company plans to spud their Welwitschia-1 well offshore Namibia
with partners Repsol in late April 2014.
On April 9, 2014, the Company announced the proposed acquisition of
Rift Petroleum Holdings Limited, a company with interests offshore
South Africa and onshore Zambia.
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 30% 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.
Prospective Resources are those quantities of petroleum that are
estimated, as of a given date, to be potentially recoverable from
undiscovered accumulations by application of future development
projects. Prospective Resources have both an associated chance of
discovery and a chance of development. Prospective Resources are
further subdivided in accordance with the level of certainty
associated with recoverable estimates assuming their discovery and
development and may be sub-classified based on project maturity.
There is no certainty that any portion of the Prospective Resources
will be discovered. If discovered, there is no certainty that it will
be commercially viable to produce any portion of the resources.
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.
The statements contained in this release that are not historical
facts are forward-looking statements, which involve risks and
uncertainties that could cause actual results to differ materially
from the targeted results. The Company relies upon litigation
protection for forward looking statements.
The reader is cautioned that assumptions used in the preparation of
any forward-looking information may prove to be incorrect. Events or
circumstances may cause actual results to differ materially from
those predicted, as a result of numerous known and unknown risks,
uncertainties, and other factors, many of which are beyond the
control of Taipan. 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 and include, but are
not limited to, statements with respect to estimates of resources,
future drilling and other exploration activities, and ultimate
recovery of resources. 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
securities law. Statements concerning resource estimates constitute
forward-looking statements and reflect conclusions that are based on
certain assumptions that the resources can be economically exploited.
Taipan Resources Inc.
Taipan Resources Inc.
Kin Communications Inc.
604-684-6730 or 1-866-684-6730
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