Taipan Resources, through its Kenya-based subsidiary Lion Petroleum, spudded the Badada-1 well Wednesday in onshore Kenya Block 2B.
The company estimates Block 2B gross mean unrisked recoverable resources at 251 million barrels of oil equivalent.
The well will be drilled to a total depth of between 9,842 and 13,123 feet to test Tertiary age reservoirs.
Taipan said the reservoir being tested may be analogous to those in the Lokichar basin where Tullow and Africa Oil have made discoveries with estimated resources of 616 million barrels.
Drilling is expected to take up to 70 days to complete.
Kenya-based Taipan operates and holds a 30 percent working interest in Block 2B.
UK-based Premier Oil holds a 55 percent stake and UK-based Tower Resources holds a 15 percent stake.