Rift Energy Corp. (Rift Energy), a privately owned early-stage oil and gas exploration firm focus on east Africa, announced Monday that it is entering into the first additional two-year exploration program on Block L19 in Kenya after meeting or exceeding all contractual requirements of the initial two-year exploration program. Rift Energy is now obligated to either acquire 310 miles (500 kilometers) of 2D seismic or drill an exploration well during the next two years.
RESULTS OF THE INITIAL TWO YEAR EXPLORATION PROGRAM:
The initial two-year exploration program required Rift Energy to acquire at least 621 miles (1,000 kilometers) of gravity and magnetic data, shoot at least 310 feet (500 kilometers) of 2D seismic data and to spend at least $100,000 on community projects. A summary of Rift Energy’s activity for the initial two year exploration program follows:
- 4,389 miles (7,064 kilometers) of gravity and magnetic data was acquired. The data was the basis for a map that identified multiple geological features of interest and was used to guide the 2D seismic program
- A geochemical survey with 640 samples taken was completed over prospective areas and integrated into the 2D seismic data
- A 449 mile (724 kilometer) 2D seismic program was completed. Results indicate numerous leads and prospects at various depths that correlate to the results of the geochemical survey
- Community development expenditures exceeded $100,000 and included building six school rooms and four water development projects within Block L19
- In accordance with the terms of the PSC (production sharing contract), Rift Energy relinquished 25 percent of Block L19. The relinquished area included the northernmost section of the block, which had previously been determined to not be prospective
FARM-OUT OF BLOCK L19:
Rift Energy is now considering farming out a portion of its interest to further fund and accelerate its exploration program within Block L19. The data acquired from the 449 mile (724 kilometer) seismic program has been processed and interpreted. The results have yielded numerous leads and prospects at various depths. A data room is now available for interested parties.
Fred Zaziski, president and CEO of Rift Energy stated, “The results of our 2D Seismic Program have been outstanding. Numerous leads and prospects at various depths have been identified. Through the geological and geophysical data we have acquired to date, we believe we have substantially decreased the exploration risk within Block L19, making it very attractive for a potential farm-out partner. As such, we believe we are in an excellent position to continue our exploration program on Block L19 and expect to commence an exploratory drilling program within the next 12-18 months.”