BG-led group make oil, gas discovery off Kenya

The BG Group joint venture that includes Pancontinental Petroleum Ltd., Perth, has reported an oil discovery off Africa’s east coast.

The Sunbird-1 well, drilled in Kenyan permit L10A, intersected a 14-m gross oil column and a 29.6-m gross gas column in a buried reef reservoir.

The group also encountered a thick and effective seal over the top of the reef with porosity and permeability of the reservoir better than expected pre-well.

Sunbird-1 was drilled in the Lamu basin and confirms a valid prospective oil system in the region, the partners said.

The well, drilled in March, has taken a while to evaluate because of technical difficulties. But the group was alerted to the good reservoir parameters after it lost drilling mud, seawater, and remedial cement pumped into the reservoir during drilling.

Pancontinental told the Australian Stock Exchange that the group is now in a prime position to explore for larger volumes of oil over its extensive portfolio of prospects and leads in the permit and two other nearby blocks. The company also expects the Sunbird result to spark an increase in industry interest in the region.

BG holds 50% interest in L10A, while Thailand’s PTTEP has 31.25%, and Pancontinental, 18.75%.

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