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Premier Oil plc had announced that it has signed a farm-in for 55% of Taipan Resources Inc. license interests in Block 2B, onshore Kenya.

The block lies in the Southern Anza basin, a Cretaceous rift basin with proven source rock, and contains several prospects and leads.

The Pearl prospect with an estimated gross prospective resource of 100 million bbl of oil will be targeted by the initial well.

The remaining lead inventory is capable of delivering in excess of 500 million bbl gross.

Under the agreement, Premier will pay Lion Petroleum Corp., a wholly-owned Kenyan-based subsidiary of Taipan, back costs of $1 million.

Premier will also pay Taipan’s working interest share of the cost of drilling and testing the Pearl prospect and future costs on Block 2B up to a cap of $13.275 million.

Simon Lockett, Chief Executive, commented: “We are delighted to have reached an agreement with Taipan and obtained acreage in the emerging onshore rift plays of East Africa. Rift basins are a core play for Premier and in this instance we have gained access to a play opening opportunity with meaningful follow on potential.”