Kenya

Gippsland Offshore has now completed negotiations with the Government of Kenya to enter the next exploration term for the L6 permit. The Minister executed the relevant documents in June 2009 and Gippsland Offshore is planning an onshore seismic survey for the latter half of the year prior to drilling its first well in the block.

Gippsland Offshore has a 60% equity position and operates Block L-6 (4,918km²) offshore Lamu Basin in Kenya.

As for a great deal of East Africa, the area has been historically poorly explored. New exploration data was acquired by Gippsland Offshore in 2007 and the team has completed the prospect mapping in the block.

A total of 7 prospects have been mapped ranging from the onshore to the offshore. They are highly prospective and are supported by oil and gas shows in wells and seeps in the region.

Kenya, with its high petroleum prospectivity, attractive Government commercial terms, proximity to the growing East African and Indian energy markets, is a high quality component of Gippsland Offshore’s ongoing exploration portfolio.

Updated 7 Oct 2009