VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 11, 2012) - Taipan Resources Inc. ("Taipan" or the "Company") (TSX VENTURE:TPN) is pleased to announce that the Company has commenced a farm-out process for Block 2B onshore Kenya and to provide an operational update regarding Block 1 and Block 2B onshore Kenya.
- Block 2B farm-out process expected to result in a definitive farm-out agreement by year-end
- Significant industry interest in the Block 2B farm-out post the Tullow and Africa Oil Ngamia-1 discovery onshore Kenya and the $78.5 million Marathon Oil farm-in that is contiguous to and on-trend with Block 2B
- Block 2B 2D seismic acquisition expected to begin in November with seismic contractor BGP
- Block 1 2D seismic program continues with approximately 1,000 km of seismic data acquired to date
- Block 1 Operator Afren plc exercised its option to increase its interest in Block 1 from 50% to 80% in exchange for carrying Taipan through 1,200 km of the 2D seismic acquisition
Mr. Maxwell Birley, Chief Executive Officer of Taipan commented, "There is a significant amount of industry interest regarding farming-in to Block 2B, particularly since the announcement of the Marathon Oil farm-in on Block 9 which is contiguous to the western boundary of Block 2B. Based on gravity, magnetic, and seismic data we can see that the Tertiary trend on Block 9 extends into our Block 2B and we expect to conclude a farm-in agreement by year-end. Operationally, Taipan's activities on Block 2B will commence shortly and we expect seismic acquisition on Block 1 to be completed in Q4."
BLOCK 2B (1.9 MILLION ACRES / 7,807 km2) ONSHORE KENYA FARMOUT PROCESS AND OPERATIONAL UPDATE
Taipan commenced a farm-out process for Block 2B onshore Kenya in August 2012. The Company is currently in discussions with a number of potential farm-in partners and expects to announce a definitive farm-out agreement by year-end 2012 subject to the approval of the Government of Kenya.
Block 2B is currently 100% owned by Taipan's wholly owned subsidiary Lion Petroleum Corp. The western boundary of Block 2B is fully contiguous to Block 9 onshore Kenya where Marathon Oil recently farmed-in to Africa Oil's interest for total consideration of $78.5 million for a 50% interest in Block 9 and a 15% interest in Block 12A.
Taipan is also pleased to announce that the Company expects to sign a 2D seismic contract for Block 2B with seismic contractor BGP and to mobilize the seismic crew in November 2012 subject to weather conditions and approval of the Kenyan Government.
Block 2B is located at the southernmost extension of the northwest-southeast trending Anza Graben, near the juncture with both the Mandera-Lugh and Mochesa Basins. The Block contains both Tertiary and Cretaceous plays. The Tertiary plays are analogous to the Tullow Oil plc and Africa Oil Corporation Ngamia-1 discovery located in the main Tertiary rift to the west. The Cretaceous plays are a potential extension of the Sudanese oil-productive Melut and Muglad basins. The NI 51-101 report completed by Sproule Associates Limited concludes that Block 2B has a mean of 387 million barrels of oil equivalent of unrisked prospective resources within the 17 exploration leads identified thus far.
BLOCK 1 ONSHORE KENYA (7.8 MILLION ACRES / 31,781 km2) OPERATIONAL UPDATE
Afren plc elected to exercise its option to increase its interest in Block 1 onshore Kenya from 50% to 80% during April 2012, subject to customary government approvals. In exchange, Taipan will receive a carry through 1,200 km of the planned 1,800 km of ongoing 2D seismic acquisition. Afren plc is the operator of Block 1. Taipan's wholly owned subsidiary Lion Petroleum Corp. owns a 20% interest in Block 1.
As at September 5th, 2012, approximately 1,000 km of 2D seismic has been acquired on Block 1. In addition, the operator has also acquired 10,696 km of airborne gravity and magnetic data on Block 1.
Block 1 is located in northeast Kenya contiguous with the borders of Ethiopia and Somalia. The presence of an active petroleum system in the area of Block 1 is clearly demonstrated by the Tarbaj oil seep located on the southwest portion of Block 1. The northern portion of Block 1 is an extension of the Ogaden basin that in Ethiopia contains approximately 4 trillion cubic feet of natural gas resources. The prospective sections in Block 1 are expected to be oil prone as demonstrated by the Genale oil seep and the El Kuran light oil discovery in Ethiopia. Based on current data, the partners estimate gross prospective resources on Block 1 to be 715 million barrels of oil equivalent.
Taipan Resources also announces that following the previously announced completion of the amalgamation of Taipan Resources Inc. and Lion Petroleum Corp. on July 17, 2012 and the appointment of Maxwell Birley as Chief Executive Officer of Taipan Resources on July 31, 2012. Mr. Alec Robinson has resigned as an officer and President of the Company in order to pursue other opportunities. Mr. Robinson will continue working closely with Mr. Birley for an interim period, in order to ensure an effective and seamless transfer of responsibilities.
About Taipan Resources Inc.
Taipan Resources Inc. (TSX VENTURE:TPN) is an independent Africa oil and gas exploration company with interests in 9.7 million gross oil and gas exploration acres (39,588 km2) in Block 1 and Block 2B onshore Kenya. Through its wholly owned subsidiary Lion Petroleum Corp., Taipan currently holds a 100% working interest in Block 2B (1.9 million acres / 7,807 km2) and a 20% working interest in Block 1 (7.8 million acres gross / 31,781 km2) which is operated by Afren plc. Taipan's total mean net unrisked prospective resources on the Blocks are estimated to be 530 million barrels of oil equivalent. Taipan is traded on the TSX Venture Exchange with the symbol TPN. Taipan currently has 74,662,991 common shares outstanding.
The statements contained in this release that are not historical facts are forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from the targeted results. The Company relies upon litigation protection for forward-looking statements.
This news release contains forward-looking statements relating to the timing and completion of a farm out for Block 2B, the timing and completion of exploration programs on Block 1 and Block 2B, the future operations of Taipan and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate", "expects" and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the completion of a farm out for Block 2B and the completion of exploration programs on Block 1 and Block 2B, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Taipan's expectations are risks detailed from time to time in the filings made by Taipan with securities regulations.
The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Taipan. As a result, Taipan cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and Taipan will only update or revise publicly any of the included forward-looking statements as expressly required by Canadian securities law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.