Oz Pancontinental, FAR Reach Kenya L6 Settlement
Sydney-listed Pancontinental Oil & Gas and FAR have reached a settlement regarding the dispute over L6 block offshore Kenya, Pancontinental said in a statement June 26.
“Pancontinental has reached an agreement to settle this long standing matter with FAR. The amount which was the subject of the 2020 default notices totals $567,145.80 (A$827,950.07),” the company said. “Pancontinental will make a payment of $150,000 into a nominated account of Operator Flow Energy (a subsidiary of FAR) as full and final settlement of any and all outstanding cash calls relating to Kenya Block L6.”
The parties will then execute the surrender and termination agreement, to start the process of exiting from Kenya L6. The dispute between the two ex-joint venture partners goes back to 2015, which was reignited by FAR earlier this year. FAR issued a cash call for more than $377,000 in 2015. The company then issued further default notices for the amounts of the original cash calls, plus interest, totalling more than $567,000.
Block L6 covers 5,010 km2 with about one quarter onshore and the remaining offshore to 400 metres water depth. The block lies in the Lamu Basin and within the Tana River delta, north of recent natural gas discoveries off the coasts of Mozambique and Tanzania, according to Pancontinental's website.