Taipan Resources presently has two assets in Kenya.
Taipan Resources acquired the assets from Lion Petroleum Corp through a formal amalgamation and in conjunction with an $11.5 million financing that closed on July 17th, 2012. Through this amalgamation, Taipan acquired exploration acreage in Block 1 and Block 2B in the northeast of Kenya. The blocks - post partial relinquishment - now cover a total area of 27,711 square kilometres.
Taipan holds a 100% equity investment in Block 2B through its wholly-owned subsidiary, Lion Petroleum Corp, The Block covers an area of 5,458 square kilometres and is located at the most southeasterly extension of the northwest-southeast trending Anza Basin, near the junction with both the Mandera-Lugh and Mochesa Basins. The Block contains both Tertiary and Cretaceous gas plays. The Badada-1 well, drilled early in 2015, failed to find evidence for a Tertiary oil-prone source rock, although there is strong evidence from wells in the neighbouring block of a gas-prone Cretaceous hydrocarbon system, with additional prospectivity for gas in Tertiary structures. The Cretaceous plays are a potential extension of the Sudanese oil-productive Melut and Muglad basins.
Management estimates of resources for Block 2B conclude that it holds gross pMean prospective resources of 400 Bcf with a geological chance of success of 35%.
Taipan has acquired 636 kilometres of 2D seismic data and 12,175 kilometres of Full Tensor Gravity data over the block. The Badada-1 well was drilled to total depth of 3,500 metres. Taipan is currently considering its plans for future exploration on the block.
Taipan holds a 20% interest in Block 1 through its wholly-owned subsidiary, Lion Petroleum Corp, and EAX (Afren) is the operator. The block covers an area of 22,711 square kilometres and lies in northeast Kenya, bordering Somalia and Ethiopia. The presence of an active petroleum system in the area is clearly demonstrated by the Tarbaj oil seep, located on the southwest portion of the block.
The northern portion of Block 1 is an extension of the Ogaden Basin in Ethiopia that contains approximately 4 trillion cubic feet of natural gas resources. The prospective sections in Block 1 are expected to be oil-prone, as indicated by the presence of the Genale oil seep and the El Kuran light oil discovery in Ethiopia. Based on current data, an NI51-101 Report, compiled by RPS Ltd in 2014, has gross pMean prospective resources of 295 MMstb with a geological chance of success of 11%.
Lion Petroleum was awarded this block in 2007 and EAX, a wholly-owned subsidiary of Afren, became a farm-in partner in January 2009.