|By Marketwired .||
|December 19, 2013 03:00 AM EST||
NAIROBI, KENYA -- (Marketwired) -- 12/19/13 -- Taipan Resources Inc. ("Taipan" or the "Company") (TSX VENTURE: TPN), through its wholly-owned Kenya-based subsidiary Lion Petroleum Corp. "Lion"), has completed the previously announced farmout agreement with Premier Oil Investments Limited ("Premier"), a subsidiary of Premier Oil plc (LSE: PMO), whereby Premier has acquired a 55% participating interest in Block 2B onshore Kenya. Taipan retains a 45% interest and operatorship during the exploration phase in Block 2B.
Under the terms of the farmout agreement Premier will carry Taipan through the cost of the work program for the First Additional Exploration Period totalling a gross cost of up to $29.5mm. This includes the drilling and testing of the Pearl-1 prospect that is estimated to have gross prospective resources of 200 million barrels of oil (mmbbls). The remaining lead inventory on Block 2B in addition to Pearl-1 is capable of delivering in excess of 500 mmbbls gross.
Premier will also provide a guarantee for the minimum work and expenditure obligations for the First Additional Exploration Period on Block 2B of US$13 million and will pay Taipan $1 million in back costs.
Taipan will retain operatorship of Block 2B during the exploration phase with Premier having the right to assume operatorship of any development.
Mr. Maxwell Birley commented, ""We look forward to working with Premier Oil, a company with a strong track record of exploration and development success. The Pearl-1 exploration well is targeting a Tertiary prospect similar to Tullow's Ngamia, Twiga, Ekales and Agete discoveries. The Company also has multiple prospects similar to Tullow's Eutko discovery. The Anza Basin is one of the largest Tertiary-age rift-basins of the East African Rift systems that together contain multi-billion barrel oil discoveries. We believe that the 'sweet spot' of the Anza Basin is located on Block 2B."
About Premier Oil plc
Premier Oil plc (LSE: PMO) is a leading FTSE 250 independent exploration and production company with interests in the North Sea, South East Asia, the Middle East, Africa, Pakistan, Brazil, and the Falkland Islands. Its portfolio of producing assets delivered production of 58,600 boepd in the first half of this year, and it has various projects in the development phase which should increase production to over 100,000 boepd in the medium-term. Premier became active in Kenya in 2011.
About Taipan Resources Inc.
Taipan Resources Inc. (TSX VENTURE: TPN) 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 45% working interest in Block 2B (1.35 million acres / 5,464km2) 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.
Taipan Resources Inc.
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Taipan Resources Inc.
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