NAIROBI, July 6 (Reuters) - Somalia's government accused Kenya on Friday of awarding offshore oil and gas exploration blocks illegally to multinationals Total and Eni because the concessions lie in waters claimed by Somalia.

Rink

JUST a question..if the oil in Ngamia1 is more that 10BBO Will Kenya be ranked higher than Angola in terms of oil reserves?

Somalia is being unfair...they are of the opinion that the boundary should run downwards yet Kenya says that the boundary should run East...the matter will most likely go to the UNCLOS

Unfortunately such disputes are not known for their speed in resolution. See Bakassi Peninsula (Nigeria/Cameroon)

AOC forum

http://boardreader.com/t...yst_Call_boorXilowq.html

Apache Corp. (APA) will drill Kenya’s first deepwater oil well next month, a prospect that could add a $70 billion crude find to the record natural-gas discoveries along East Africa’s coast.
Apache and partners including Tullow Oil Plc (TLW) said the Mbawa well is likely to strike oil based on seismic data and slicks seen on the Indian Ocean’s surface. The drilling is targeting as much as 700 million barrels, a resource valued at twice Kenya’s annual economic output at today’s oil prices. With a 50 percent a stake in the well, a strike could add more than 10 percent to Houston-based Apache’s reserves
"What we are looking at in this well is to see if we can actually change the paradigm” in what’s been a gas-prone area, Tullow Chief Financial Officer Ian Springett said in a phone interview. “It’s a high-risk, high-upside well.”
http://www.bloomberg.com...-s-first-oil-energy.html

[quote=mkonomtupu]Apache Corp. (APA) will drill Kenya’s first deepwater oil well next month, a prospect that could add a $70 billion crude find to the record natural-gas discoveries along East Africa’s coast.
Apache and partners including Tullow Oil Plc (TLW) said the Mbawa well is likely to strike oil based on seismic data and slicks seen on the Indian Ocean’s surface. The drilling is targeting as much as 700 million barrels, a resource valued at twice Kenya’s annual economic output at today’s oil prices. With a 50 percent a stake in the well, a strike could add more than 10 percent to Houston-based Apache’s reserves
"What we are looking at in this well is to see if we can actually change the paradigm” in what’s been a gas-prone area, Tullow Chief Financial Officer Ian Springett said in a phone interview. “It’s a high-risk, high-upside well.”
http://www.bloomberg.com...s-first-oil-energy.html[/quote]


I have been waiting for this news for sometime time. Mbawa well....L8 has the best seismic data in the Lamu basin, and the news hasn't dissappointed wao...

Its better to find oil. Gas can be very costly to develop

From the grapevine

N1

Significant light oil discovery.
Oil in sands encountered in 1100m interval including 300m thick in Loch Shale.
Really significant explor result. Demonstrates substantial oil generation occurred in South Loc basin which is 1 of 7 related basins, each has similar magnitude to Lake Albert.

Loc Shale important interval. Above this the well encountered 100m net in 650m gross. Below Gross 150m. Oil recovered. Haven't estimated net, AOI say 43m.

Move away from fault we expect to find a complete interval of Loch Sands.
Expect 250m of that Gross further away from fault and quality to improve.

Q & A.

Can you read anything across from other basins?

Main impact is in the South Loch basin. Level of confidence is increased significantly. This basin has the Material Basin. Potential equiv to Lake Albert. 6 other basins holding at previous risk levels. We will appraise N1 and drill out similar prospects, Twiga, and embark on campaign to test other basins, South Omo in North Trend, results at the end of the Year.

Very bold wildcats.

Acreage is 10x Uganda, 1bn barrels so pre drill guidance was a 1/3 of prospective, so 3bn but then N1 and it exceeded expectations so a temptation to increase guidance to potential 1bn in South Loch, was thinking about 3bn barrels for their acres in Ethiopia and Kenya, might be closer to 9 or 10, but high risk upside with lots of work to do.

BUT with N1the size of the prize is potentially bigger.

Q&A

PaiPai....... drilled on old seismics.......? Kenya....... results tell anything about Volcano and disruption to oil play. What is source rock in lower sands?

Pai Pai....... all drilled on old seismic and FTG. Traps pretty well defined and in better position than a year ago.

100 leads now as opposed to 80.
Volcanics, some, drilled through some, thin and near surface. Concerns have been eased there. Can't rule our deeper source rock we don't yet know about.

Q &A

Congrats on Lower Loch... Twiga. 30km away so an idea on derisking on Twiga?

Twiga is geometrically mirror image to N1. COS has doubled to 30%. Lots of Geologiacl and Geographical stuff...... Good for Twiga in reference to previous Uganda style differences. Volumes....... hold back on volumes until evaluation of work. Exceeded guidance. Upside was 90mn barrels. That has been exceeded, work on going.

Q&A

Remind us net or gross and how matches pre drill.

Best in Lake Alb were 40m Net... that was good. Here we are talking 100m net in upper and more in lower so twice as much net pay. "WILDLY EXCEED EXPECTATIONS". Tax position updates to come

Q&A

N1. Reservoir geometry. missing some sections due to fault. Move away from fault should find more...... again 250m Gross..... RF looking for analogues to Lake Alb. A way off recover factors. Have recovered oil to surface."

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About it really. All very good to listen to.



Ya.. i'm very bullish, land package can't be duplicated.. AOIs holdings are worth a ton of $$$$$$$$$$. ML was pounding the table on TULLOW saying KENYA holdings worth xxx/share... AOI pretty much a equal partner in Kenya.. AOI a lot smaller.. and will move a lot faster and harder. 8/share will look really cheap soon. Like buying APPLE at 8/share after iphone first came out !

Hisah, whats your opinion on New Energy Technologies Inc for it seems am in a quagmire. I know that NENE has got the most innovative products and also cost effective compared to other solar companies but my bone of contention is whether this industry will pick up or not. Am referring to Solyndra company which was heavily funded by the Obama administration only to declare bankruptcy which makes me wonder whether New Energy Technologies Inc will be successful. But then again, it may be successful, just as Tesla which almost never made it through with its electric cars and the most intriguing part is where the other car companies started implementing what Tesla and other three electric car companies had started and as a result, we are having one company's idea being replicated by other companies enabling them to have a stake in the electric car market. My thoughts are that may be the same might happen to New Energy Technologies Inc.
So, whats your take about it?