2011-06-28-2011-06-17-2011-06-17

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
$13.2MM
Description

Acquired 50% WI in production-sharing contract for 5,123-kilometer block offshore Kenya.

A subsidiary of Apache Corp., Houston, (NYSE: APA) has acquired a 50% interest in a production-sharing contract offshore Kenya from Origin Energy Kenya Pty Ltd., a subsidiary of Origin Energy Ltd., Sydney, Australia, (Australia: ORG) for US$13.2 million.

Apache made the payment to reimburse Origin's historical costs in the project. Apache has become operator. In addition, Apache will meet a component of Origin's costs of an initial exploration well to be drilled in targeting the Mbawa structure.

The contract pertains to Block L8 in the offshore Lamu Basin, which comprises 5,123 square kilometers. Prospectivity of the block centers on the Mbawa structure with potential at inferred Cretaceous and Jurassic reservoir levels.

Interest holders in the block at now Apache with 50%, Origin with 25% and Pancontinental Oil & Gas NL/Afrex Ltd. with 25%.

Origin's executive general manager Rob Willink says, "The joint venture has agreed to go forward with exploration drilling, with Apache as operator bringing its expertise to that endeavor."