Pancontinental Oil & Gas, PTTEP withdraw from BG's Block L10A offshore Kenya

PERTH, Western Australia -- Pancontinental Oil & Gas and its L10A JV partner PTTEP of Thailand have issued operator BG Kenya L10A Ltd., notices of withdrawal from Block L10A in the Lamu basin offshore Kenya.

Subject to Ministerial consent, Pancontinental’s 18.75% interest and PTTEP’s 31.25% interest will be transferred to the operator BG who will then be the only remaining participant and hold 100% of the L10A license.

The company stated that it is committed to the prudent deployment of its resources and as such it has decided to withdraw from the L10A project, given the project’s cost and potential benefit profile with respect to the company.

Pancontinental will advance and look to grow its African portfolio in the near term, consistent with its continued belief in the high prospectivity of parts of the continent and their future high potential to produce commercial oil and gas.

The company affirms that it remains in a unique position, with its remaining asset portfolio in Namibia (EL0037 with Tullow Oil) and Kenya (Block L6 with FAR Limited, Milio International) fully funded for the next phase of exploration commitments.