Interest in Kenya’s oilfields growing

through a cash-call (rights issue) to fund its exploration activities in Kenya and Namibia and boost its working capital.
The cash-call signals the pressure on international companies to expand operations after the recent oil find. Kenya has seen interest in its exploration blocks rise since its first oil discovery in the dry and dusty county of Turkana, where Africa-focused UK firm Tullow Oil has been exploring.

Pan-continental’s move comes weeks after the Irish multinational — Tullow Oil — announced the discovery of 20 metres of net oil pay in Kenya’s Ngamia-1 exploration well late last month.
Tullow’s executives said the discovery of oil in the block  — located in the Turkana County — just two months after they started their exploration was a signal that Rift Valley basin was generally rich in oil.

The Australian firm’s partners in Kenya’s blocks L10A & L10B include BG Group Plc, Premier Oil Investment and Cove Energy Plc. First Australian Resources               (FAR) partners with Pan-continental on Kenya’s block L6.
Block L8 is run as joint venture with Apache, the operator holding a 50 per cent stake. Origin Energy Ltd has a 20 percent share while Pan-continental and Tullow Oil have a 15 percent stake each.

Pan-continental expects to start drilling on Kenya’s block L8 Mbawa prospect within Q3 of 2012.
Pan-continental estimates Mbawa’s maximum potential at 4,9 billion barrels of oil.
The firm has an 85 percent interest in Namibia’s offshore block EL 0037 and operates the licence.

“The operators of our four Kenyan projects are aggressively moving forward with the exploration programmes.
“This capital raising means that Pan-continental will remain in control of its own strategic direction and ensures that it continues to maintain its significant interests in its projects in the key East African region,” CEO Barry Rushworth said in a statement.

The funds, the company said, will be raised through a Sh3,6 billion (US$45 million) placement of up to 257,1 million shares at an issue price of 17,5 dollar cents per share to sophisticated and professional investors and through a share purchase plan capped at US$5 million to existing shareholders, also at US$0,175 per share. — CAJ News.