In its 2016 annual report, ERHC Energy Inc (ERHC) reported that it is seeking partners to farm down part of its interest in the onshore Block 11A, Lotikipi Basin. It was reported in October 2017 that the operator CompaÃ±ia EspaÃ±ola de PetrÃ³leos SA (CEPSA) withdrew from the contract. Therefore it is unclear who has taken over CEPSAâs 55% interest. ERHC holds a 35% interest. The National Oil Corporation of Kenya (NOCK) holds a 10% carried interest. It is to be noted that Circle Ltd has a 5% carried interest of ERHCâs total interest. Bock 11A covers 8,263 sq km, south of the border with South Sudan and west of Block 11B.    The contract is in the third and last exploration phase, valid until September 2018. Commitment of the last period is to drill one exploration well to a minimum depth of 3,000 m.     The company plugged and abandoned Tarach 1 new-field wildcat with oil shows in mid-2016. However, CEPSA confirmed it was not a commercial success, but believes that it proved a working petroleum system. The company considers pursuing exploration activities, which would potentially include a new seismic survey on the license prior to deciding whether to drill a new well (possibly Egole prospect).    The Egole 1 well was the second exploratory well planned depending on the results of Tarach 1. The Egole prospect is four-way rollover closure onto a northwest - southeast trending fault plain with mean prospective resources of 101 MMbbl of oil. ERHC estimates that mean unrisked prospective resources of all thirteen prospects and leads mapped in Block 11A total around 662 MMbbl of oil.    Background Information    In July 2012, ERHC announced the signature of the production sharing contract, while the official award occurred on 2 October 2012.    On 4 December 2013, the Spanish CompaÃ±ia Espanola de PetrÃ³leos SA (CEPSA) obtained operatorship of the tract with a 55% stake, while ERHC retained 35% working interest. The National Oil Corporation of Kenya (NOCK) kept its 10% carried interest. Circle Ltd has a 5% carried interest of ERHCâs total interest (Circle Ltd acted as finder in ERHCâs acquisition of the Block by facilitating ERHCâs entry into Kenya).    Geology and Geophysics works     CEPSA and ERHC acquired a 14,944 line km Full Tensor Gravity Gradiometry (FTG) survey that was completed on 6 January 2014. It allowed for the identification of the most prospective areas of the Lotikipi rift Basin. Both companies completed also a 1,086.6 line km of 2D seismic data over the tract at an estimated cost of UDS 2.7 million in August 2014.    Drilling activity    The Tarach 1 well was spudded on 14 April 2016 with the âSMP-106â land rig. The well was plugged and abandoned in late June 2016 at a total depth of 3,010 m (MD) with oil shows. The partners expected to find oil at 1,700 and 3,000 m. The well was drilled from a 20ââ surface casing through intermediate casings down to 2,442 m and set a 7ââ liner down to TD. The Tarach 1 well reportedly cost the partners over USD 25 million.    The Tarach prospect is located in the Tarach sub-basin (as reported by partner ERHC), in the eastern part of Block 11A. The Tarach-1 prospect was defined based on the interpretation of 1,086.6 km of 2D seismic data acquired by the partners in the summer of 2014. The prospect is located in the central part of the basin and reportedly covers 12 sq km. The Tarach prospect corresponds to a three-way structural closure trapping against a N-S trending normal fault located at 1,426 m MD (-954 m TVDSS). The vertical closure is estimated at 220 m and the trap mechanism is probably similar to the one present in the nearby Lokichar Trough
Kenya ERHC Energy Inc seeking partners for Block 11A