Kenya – Pate 2 – L4 – Operator Zarara plans to start drilling in January 2018
Zarara Oil & Gas is expected to spud the Pate 2 appraisal well in January 2018. The environmental licences for the planned drilling campaign were approved by Kenya’s National Environment Management Authority (NEMA) in October 2017 and will be valid until July 2019. The Great Wall Drilling Company Ltd has been contracted to carry out drilling operations; the GWDC 190 land rig is likely to be utilized. Norwell Engineering is progressing with the planning and design of the drilling programme, which currently involves Pate 2 & 3 and the option of two additional appraisal wells.
The estimated total project cost stands at approximately US$ 15.7 million. Pate 2 has a 4,600m PTD (to be a vertical well), which Zarara has estimated will take ~120 days to drill, test and complete. The primary target is the Kipini Sand Group; a fluvial and deltaic facies, which has been described as poorly sorted and unconsolidated, but has also been reported to have good net log porosity. A deeper Upper Cretaceous Kofia sand, which was penetrated by the offset Kofia 1 well, may also be a secondary target. The well is appraising the Pate gas discovery, in the Lamu Basin, which was drilled by the Pate 1 well in 1970. Pate 1 reached a 4,175m MD and encountered an over-pressured 10m gas-charged, Lower Eocene-aged sand (Basal Kipini reservoir) at TD. It was targeting a dip closure on the SW extension of the Mararani-Dodori anticlinal trend, with Lower Tertiary and Upper Mesozoic objectives, which had previously been encountered in the Dodori 1 well (1964, small shows and traces of bitumen in the Palaeocene). However, due to technical problems during drilling, Pate 1 was neither logged nor tested and failed to fully penetrate the reservoir section. Zarara is a wholly owned subsidiary of Midway Resources International and holds a 75% WI and operatorship for the L4 and L13 licences; the remaining equity is held by SOHI Gas Lamu Ltd (a wholly owned subsidiary of Swiss Oil Holdings International Inc) (15%) and NOCK (10%). The interest held by these companies is free-carried until final approval of planned commercial production. However, Zarara has negotiated a Heads of Agreement for the eventual acquisition of the 15% interest from SOHI Gas Lamu Ltd.