18th Feb 2015 12:13
LONDON (Alliance News) - Tower Resources PLC Wednesday said its joint venture partner began drilling the Badada-1 well in onshore Kenya on January 7.
The well on the Lokichar Basin is a joint venture between Tower, which holds a 15% interest, Premier Oil PLC, which holds a 55% stake and, Taipan Resources Inc, which holds the remaining balance and is the operator of the license.
Earlier in February, Tower said drilling the well would take around 70 days, meaning the well should be completed before the end of March.
The partners have previously struggled to begin work on the Badada-1 well. In November, Taipan Resources received a temporary injunction preventing any work being completed on the site, but was subsequently allowed to continue work after the injunction was temporarily lifted by the High Court of Kenya.
Although the injunction was lifted, it is only temporary. A further hearing has been scheduled after the first well has been completed.
The gross well costs are estimated to total between USD20 to USD25 million, of which Tower will pay between GBP3 and USD3.8 million.
Tower shares were up 4.2% to 0.495 pence per share on Wednesday afternoon, whilst Premier Oil shares rose by 3.8% to 186.90 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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