Taipan Resources Inc. (TSX-V: TPN / OTCQX: TAIPF) ("Taipan" or the "Company") is pleased to announce that its wholly owned, Kenya based subsidiary Lion Petroleum Inc. has entered into a letter of intent with Greatwall Drilling Company of China to contract the GW-190 rig for its planned Badada well on Block 2B in north east Kenya. Taipan is fully carried by partners Premier Oil and Tower Resourcs Plc on the Badada well.
Ground has been broken on the Badada well site on Block 2B in the Anza Basin, where a water well is presently being drilled and site preparation underway in advance of the delivery of the rig. Taipan has also contracted or is in the process of contracting with a number of local Kenyan companies from the surrounding area for a range of services including site construction, road repair and the provision of food and other supplies.
It is anticipated the well will be spud between mid-December 2014 and mid-January 2015, and will take approximately 70 days to complete.
The Badada well is targeting 251mmbbl of oil in the Tertiary rift play where evidence suggests there is an oil-prone lower Tertiary source (Hothori-1 well, drilled in Taipan's acreage, in 1989). Taipan believes there is significant potential for an oil-prone Tertiary play in Block 2B and believes there are similar structural elements on this block when compared to the initial discoveries in the Lokichar basin of 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).
The Anza Basin is one of the largest Tertiary-age rift-basins in the East African Rift system that together contain multi-billion barrel oil discoveries. Mr. Maxwell Birley, CEO of Taipan commented “We continue to believe that the ‘sweet spot’ of the Anza Basin is located on Block 2B. This is an exciting time for the Taipan team and for our shareholders as we prepare to spud this well later this year.”
The Company will provide a further update upon the formal contracting of the GW-190 rig and mobilisation to the Badada-1 drill site and other operational progress in due course.