Taipan Updates on Badada Well Progress and Continuation of Work
NAIROBI, KENYA / TNW-ACCESSWIRE / December 11, 2014 / Taipan Resources Inc. (TSX VENTURE:TPN)(OTCQX:TAIPF) ("Taipan", "the Company") is pleased to announce that the Company has executed a contract with Greatwall Drilling Company ("Great Wall") to provide the GW-190 land rig. Earlier this year, Taipan also contracted Aberdeen-based Norwell Engineering to manage the drilling operations of the Badada-1 well.
In June of this year, Great Wall's GW-190 land rig successfully completed the drilling of the Sala-1 discovery in Block-9 of the Anza Basin, Kenya, adjacent to Block-2B. Norwell Engineering assisted in the design and management of the Sala-1 drill campaign.
Further to the Company's announcement on November 27 2014, Taipan, has advised that drilling is planned to commence within the next three to four weeks. The well is expected to take approximately 70 days to drill and gross well costs are estimated at US$20 to US$25 million.
The Company also wishes to provide an update with respect to the temporary injunction served on its Kenya-based subsidiary Lion Petroleum Inc. ("Lion") on November 17, 2014, temporarily preventing work from continuing on the Badada-1 well onshore Kenya (Tower 15%, Premier Oil 55% and Taipan 30% working interests). Since the application was lodged in November, by the instructions of the Court contained in the temporary injunction, work on site was only delayed by 3 days.
Lawyers representing Taipan, Lion Petroleum, Premier Oil, the County Government of Wajir, the Ministry of Energy and Petroleum, the Attorney General and the National Land Commission appeared in Court on December 10, 2014 where they received confirmation of the variance to the November 17, 2014 injunction, allowing work to continue at the Badada-1 well-site. A further hearing, the purpose of which is that all parties file written arguments, is scheduled for March 16, 2015 after the projected completion of the well.
The Badada-1 well will test analogous geology to the Lokichar Basin where Tullow Oil and Africa Oil have made multiple oil discoveries and continue to unlock the potential of the Tertiary Rift sequence. The well is designed to test Tertiary age reservoirs at depths ranging from 1,500 and 3,500 metres.
Taipan estimates gross mean unrisked prospective resources of 251mmboe (Source: Sproule International Limited NI 51-101 ("Sproule") February 2014) for Badada-1. In the event of success with the Badada-1 well, it is envisaged that Taipan and its partners will test the upside potential in Block-2B with multiple follow-on prospects and leads in a Tertiary sequence analogous to the Tertiary discoveries in Block 10BB and 13T of the Lokichar Basin.
As part of the Lion's focus on local content, a number of Kenyan companies have been contracted to provide well-site services including logistics, road repairs and the drilling of water wells and other services. In addition, as part of Taipan's programme of corporate social responsibility in the Anza Basin, the Company has embarked on a range of social initiatives including clean water projects and access to basic medical care for the local communities.
The Board and Management Team of Taipan remain committed to oil exploration in Kenya, and are also actively pursuing oil exploration and development opportunities in other parts of sub-Saharan Africa.
For periodic updates and for photos of the well site, visit www.taipanresources.com
About Taipan Resources Inc.
Taipan Resources Inc. (TSX VENTURE:TPN)(OTCQX:TAIPF) is an independent, Africa-focused oil exploration company with interests in Block 1 and Block 2B onshore Kenya through its wholly owned subsidiary Lion Petroleum Corp.
Taipan operates and holds a 30% working interest in Block 2B (1.35 million acres / 5,464 km2) and a 20% working interest in Block 1 (5.497 million acres / 22,246 km2) which is operated by East Africa Exploration (Kenya) Ltd, a subsidiary of Afren plc.
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. 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.
By definition of the COGC Handbook - "Undiscovered resources are those quantities of oil and gas estimated on a given date to be contained in accumulations yet to be discovered." Further the Handbook states - Caution (per NI 51-101/5.9(2)(v)(B)) - "There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources." In addition, per NI 51-101/5.6 "the estimated values disclosed do not represent fair market value."
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.
CONTACT INFORMATION
Joel Dumaresq- Chairman & CFO
+1 (604) 336.3195 (Office)
jdumaresq@taipanresources.com
www.taipanresources.com
For Investor Relations Contact:
Kin Communications Inc.?
+1 (604) 684.6730 or +1 (866) 684.6730
TPN@kincommunications.com
www.kincommunications.com
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