Pancontinental withdraws from Kenya's L10B Block
PERTH, Australia -- Pancontinental Oil & Gas has served a notice of withdrawal on BG Kenya L10B Ltd., the only remaining participant and operator of Kenya License L10B, from the joint operating agreement with BG and from the production sharing contract (PSC) governing the block.
Pancontinental holds a 25% interest in L10B, while BG holds 75%.
License area L10B lies immediately to the south of area L10A, in which a joint venture, also operated by BG Group (50%), drilled the Sunbird-1 oil discovery in 2014. Pancontinental holds 18.75% in this license and PTTEP of Thailand holds 31.25%.
Pancontinental believes it has sufficient exposure to the prospectivity of the area through its 18.75% interest in Block L10A. The blocks have similar geological features that in some cases straddle the permit boundary, while exploration in L10A is more advanced.
