Taipan Resources Inc. (TSX-V:TPN / OTCQX:TAIPF) ("Taipan", "the Company") is pleased to announce that the Company has executed a contract with Greatwall Drilling Company to provide the GW-190 land rig. Earlier this year, Taipan also contracted Aberdeen-based Norwell Engineering to manage the drilling operations of the Badada-1 well.
In June of this year, the GW-190 land rig successfully completed the drilling of the Sala-1 discovery in Block-9 of the Anza Basin, Kenya, adjacent to Block-2B. Norwell Engineering assisted in the design and management of the Sala-1 drill campaign.
Further to the Company’s announcement on 27 November 2014, Taipan, has advised that drilling is planned to commence within the next three to four weeks. The well is expected to take approximately 70 days to drill and gross well costs are estimated at US$20 to US$25 million.
The Company also wishes to provide an update with respect to the temporary injunction served on its Kenya-based subsidiary Lion Petroleum Inc. (“Lion”) on 17 November 2014, temporarily preventing work from continuing on the Badada-1 well onshore Kenya (Tower 15%, Premier Oil 55% and Taipan 30% working interests). Since the application was lodged in November, by the instructions of the Court, work on site was only delayed by 3 days.
Lawyers representing Taipan, Lion Petroleum, Premier Oil, the County Government of Wajir, the Ministry of Energy and Petroleum, the Attorney General and the National Land Commission appeared in Court on 10 December where they received confirmation of the variance to the 17 November injunction, allowing work to continue at the Badada-1 well-site. A further hearing is scheduled for 16 March, 2015 after the projected completion of the well.
The Badada-1 well will test analogous geology to the Lokichar Basin where Tullow Oil and Africa Oil have made multiple oil discoveries and continue to unlock the potential of the Tertiary Rift sequence. The well is designed to test Tertiary age reservoirs with a total depth of the well planned between 3,000 and 4,000 metres.
Taipan estimates gross mean unrisked prospective resources of 251mmboe (Source: Sproule International Limited NI 51-101 (“Sproule”) February 2014) for Badada. In the event of success with the Badada-1 well, it is envisaged that Taipan and its partners will test the upside potential in Block-2B with multiple follow-on prospects and leads in a Tertiary sequence analogous to the Tertiary discoveries in Block 10BB and 13T of the Lokichar Basin.
As part of the Lion’s focus on local content, a number of Kenyan companies have been contracted to provide well-site services including logistics, road repairs and the drilling of water wells and other services. In addition, as part of Taipan’s programme of corporate social responsibility in the Anza Basin, the Company has embarked on a range of social initiatives including clean water projects and access to basic medical care for the local communities.
The Board and Management Team of Taipan remain committed to oil exploration in Kenya, and are also actively pursuing oil exploration and development opportunities in other parts of sub-Saharan Africa.