Apache Joint Venture Discovers Natural Gas Offshore Kenya

   By Ross Kelly 
 

SYDNEY--A joint venture led by Apache Corp. (APA) has discovered natural gas off the coast of Kenya, boosting hopes the East African nation could have commercial reserves after big finds in nearby Mozambique and Tanzania.

Smaller joint venture partner Pancontinental Oil & Gas NL (PCL.AU) said the Mbawa-1 exploration well hit a net gas column of about 52 meters. The well has only been drilled to a depth of 2,553 meters below the ocean floor and drilling will continue to a planned total depth of 3,275 meters. A secondary exploration target lies above the planned total depth, Pancontinental said.

Apache operates and owns 50% of the joint venture while Australia's Origin Energy Ltd. (ORG.AU) owns 20%, Pancontinental owns 15% and Tullow Oil PLC (TLW.LN) owns 15%.

Wood Mackenzie estimates that 100 trillion cubic feet of natural gas has been discovered in Mozambique and Tanzania to date, ranking the region as one of the most prolific conventional gas plays in the world.

The energy consultancy says there could be enough gas offshore Mozambique and Tanzania alone to support up to 16 liquefied natural gas, or LNG, production units.

-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692; [e-mail]

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