<a href=Apache is the operator with 50% stake in the L8 licence area joint venture” height=”198″ src=”https://www.offshore-technology.com/wp-content/uploads/static-progressive/LPG2_update.jpg” style=”padding:10px” title=”Origin Energy” width=”301″ />

Pancontinental Oil & Gas announced the presence of gas at the Mbawa 1 exploration well in the L8 licence area, offshore of Kenya.

Drilled to a total depth of 2,553m RT, the well encountered approximately 52 net metres of natural gas pay in porous Cretaceous sandstones.

The company acquired wire line logs, fluid samples and sidewall cores from the well reservoir, and fluid parameters will be available once logs and sample analyses are completed.

Drilling has begun, to a total depth of 3,275m RT, where a secondary exploration target lies above the planned TD.

Pancontinental Oil & Gas CEO and director Barry Rushworth said this is a substantive hydrocarbon discovery offshore Kenya.

"We are delighted to prove that there is a working hydrocarbon system offshore Kenya. Further work continues to evaluate the size of the discovery.

"We thank the Government of Kenya for its cooperation and support in achieving this very positive initial outcome for the country of Kenya, for the L8 joint venture and for Pancontinental.

"With drilling continuing to a deeper exploration target, these interim results may be the first part of the story in this well, and they are certainly just the beginning of the main story of oil and gas exploration offshore Kenya."

Apache is the operator with a 50% stake in the joint venture, while Origin Energy holds 20%, Pancontinental Oil & Gas has 15% and Tullow Kenya owns 15%.

Pancontinental’s 15% interest is free-carried through Mbawa drilling by Tullow Oil up to a cap of $9m; Tullow can earn five percent by providing funding of $6m on Pancontinental’s behalf.

Image: Apache is the main operator with a 50% stake in the L8 licence area joint venture. Photo courtesy of: Origin Energy.