The mapping concludes the first stage of an agreement to explore for oil in Kenyan areas held under Production Sharing Contracts (PSCs) L6, L8 and L9, areas that are currently held by a joint venture between Pancon (40%) and unlisted Afrex (60%).
PSCs L6, L8 and L9 cover an area around 21,254sq.km, predominately offshore Kenya, in water depths less than 500m with the deepest water reaching 1,500m.
Under the terms of the staged agreement, Woodside as operator will shoot at least 2,000km of 2D seismic to earn 50% of PSCs L6, L8 and L9.
The company must then elect in respect of each PSC to drill, and if warranted test, one well to increase its interest to 65%, or hand the 50% interest in that PSC back to Pancon and Afrex.
Woodside then has a further option in respect of each PSC to increase its interest to 75% by drilling and testing a second well in the relevant permit.
Preliminary mapping results of the larger prospects in the PSCs by Pancon and Afrex have indicated potential recoverable reserves exceeding a billion barrels of oil or several trillion cubic feet of gas, if hydrocarbons are present.
