Africa oil drilling 8 wells in East Africa, 2 in Puntland

[Monk-of-Mogadishu]

http://africa.ibtimes.com/articles/1471 ... africa.htm

Canadian oil and gas explorer Africa Oil Corp plans to drill up to eight exploratory wells in blocks it holds interests in across east Africa, a senior company executive said on Tuesday.

Africa Oil and its partners hold exploration licences in Kenya, Ethiopia and Somalia's semi-autonomous Puntland region.

"We'll start a drilling programme beginning in September 2011. Tullow as an operator will drill four to five wells in Kenya and Africa Oil Corp and PLP (its Puntland Partner) will drill two wells in Puntland and one well in Ethiopia," James Phillips, Africa Oil Corp's chief operating officer, told a regional oil and gas meeting in the Kenyan capital, Nairobi.

Phillips said he had a $43 million budget for the drilling programme.

Africa Oil expects to finalise a deal to acquire Canada's Lion Energy Corp for about C$40.3 million in an all-stock deal to expand their operations in east Africa.

"We'll be closing that deal hopefully in early June," Phillips said.

Gas discoveries in Tanzania, and significant proven oil reserves along the border between Uganda and Congo have peaked interest in the region, which had been largely overlooked.

[Mckuus]

Excellent timing as oil prices are soaring