Taipan Resources Inc. (“Taipan”), through its wholly owned Kenya-based subsidiary Lion Petroleum Corp., has signed a binding farm-out agreement with Tower Resources (Kenya) Limited, a subsidiary of AIM-listed Tower Resources plc (“Tower”), whereby Tower will acquire a 15-per-cent participating interest in Block 2B onshore Kenya.
Taipan will retain a 30-per-cent operated interest in Block 2B.Taipan, is presently preparing to drill the Badada Prospect on Block 2B in 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).
Taipan, through its subsidiary Lion Petroleum will retain operatorship of Block 2B during the exploration phase.
Maxwell Birley, Chief Executive Officer, commented: “We have further de-risked our prospect in Block 2B with this farm out to Tower. The farm out to Tower is being completed at a favorable premium to the farm down to Premier announced in December of last year, and is reflective of the increased sentiment towards the value of our acreage in Block 2B.”
He added “between this farm down and the recent private placement, Taipan is now fully-funded and exposed to the drilling of a well on Block 1 and Block 2B in 2014. We have now set our sights not only on the drilling of these two exciting targets, but also on other sub-Saharan assets which will allow us to expand our portfolio of exploration assets in 2015 and beyond”.