Taipan Resources Inc. (“Taipan” or the “Company”) (TSX VENTURE:TPN)(OTCQX:TAIPF) is pleased to announce that an independent assessment of the Company’s prospective resources on Block 1, northern Kenya has been completed by RPS Energy in the United Kingdom (“RPS”). The independent assessment was carried out in accordance with the standards established by the Canadian Securities Administrators in National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. The effective date of the report is October 15, 2014.
The total gross aggregate mean prospective resources on Block 1 in the report are estimated at 1,303 MMbbls 1 oil (260 MMbbls Taipan working interest).
The largest identified feature is the El Wak lead with gross mean prospective resources of 728 MMbbls 1 (146 MMbbls Taipan working interest). The high estimate of prospective resources for El Wak is 1,911 MMbbls 1 (382 MMbbls net to Taipan).
The El Wak lead is a four-way dip closed structure at surface overlying 1200 sq km of gravity high. A 290 km 2D seismic shoot, estimated to cost around $2m net to Taipan, is planned over the prospect before the end of the year.
Taipan holds a 20% working interest in Block 1 (5.497 million acres / 22,246 sq km) which is operated by East Africa Exploration (Kenya) Ltd, a subsidiary of Afren Plc.
Afren has a two well commitment in the current exploration period in Block 1.
Commented Paul Logan, Exploration Manager for Taipan “Due to the size of the structure and the presence of hydrocarbons in the area, indicated by an oil seep to the west at Tarbaj Hill, El Wak should prove to be an intriguing and attractive target to drill”.
Geological Probability of Success (“GPoS”) of Aggregated Volume for any Hydrocarbon type = 27%
About Taipan Resources Inc.
Taipan Resources Inc. (TSX VENTURE:TPN)(OTCQX:TAIPF) is an independent, Africa-focused oil exploration company with interests in Block 1 and Block 2B onshore Kenya through its wholly owned subsidiary Lion Petroleum Corp.
Taipan operates and holds a 30% working interest in Block 2B (1.35 million acres / 5,464 sq km) and a 20% working interest in Block 1 (5.497 million acres / 22,246 sq km) which is operated by East Africa Exploration (Kenya) Ltd, a subsidiary of Afren plc.
The independent assessment was carried out in accordance with the standards established by the Canadian Securities Administrators in National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. The effective date of the report is July 31, 2014.
This document must be considered in its entirety. It reflects RPS’s informed professional judgment based on accepted standards of professional investigation and, as applicable, the data and information provided by the Client and/or obtained from other sources e.g. public domain, the limited scope of engagement, and the time permitted to conduct the evaluation.
In line with those accepted standards, this document does not in any way constitute or make a guarantee or prediction of results, and no warranty is implied or expressed that actual outcome will conform to the outcomes presented herein. RPS has not independently verified any information provided by or at the direction of the Client and/or obtained from other sources e.g. public domain, and has accepted the accuracy and completeness of these data. RPS has no reason to believe that any material facts have been withheld from it, but does not warrant that its inquiries have revealed all of the matters that a more extensive examination might otherwise disclose.
The opinions expressed herein are subject to and fully qualified by the generally accepted uncertainties associated with the interpretation of geoscience and engineering data and do not reflect the totality of circumstances, scenarios and information that could potentially affect decisions made by the report’s recipients and/or actual results. The opinions and statements contained in this report are made in good faith and in the belief that such opinions and statements are representative of prevailing physical and economic circumstances.
There are numerous uncertainties inherent in estimating reserves and resources, and in projecting future production, development expenditures, operating expenses and cash flows. Oil and gas reserve engineering and resource assessment must be recognized as a subjective process of estimating subsurface accumulations of oil and gas that cannot be measured in an exact way. Estimates of oil and gas reserves or resources prepared by other parties may differ, perhaps materially, from those contained within this report. The accuracy of any reserve estimate is a function of the quality of the available data and of engineering and geological interpretation. Results of drilling, testing and production that post-date the preparation of the estimates may justify revisions, some or all of which may be material. Accordingly, reserve estimates are often different from the quantities of oil and gas that are ultimately recovered, and the timing and cost of those volumes that are recovered may vary from that assumed.
This assessment has been conducted within the context of RPS’s understanding of the effects of petroleum legislation and other regulations that currently apply to these properties. However, RPS is not in a position to attest to property title or rights, conditions of these rights including environmental and abandonment obligations, and any necessary licenses and consents including planning permission, financial interest relationships or encumbrances thereon for any part of the appraised properties.
In carrying out this study, RPS is not aware that any conflict of interest has existed. As an independent consultancy, RPS is providing impartial technical, commercial and strategic advice within the energy sector. RPS’s remuneration was not in any way contingent on the contents of this report. In the preparation of this document, RPS has maintained, and continues to maintain, a strict independent consultant-client relationship with the Client. Furthermore, the management and employees of RPS have no interest in any of the assets evaluated or related with the analysis carried out as part of this report.
Staff members who prepared this report are professionally qualified with appropriate educational qualifications and levels of experience and expertise to perform the work.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The statements contained in this release that are not historical facts are forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from the targeted results. The Company relies upon litigation protection for forward looking statements.
By definition of the COGC Handbook – “Undiscovered resources are those quantities of oil and gas estimated on a given date to be contained in accumulations yet to be discovered.” Further the Handbook states – Caution (per NI 51-101/5.9(2)(v)(B)) – “There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.” In addition, per NI 51-101/5.6 “the estimated values disclosed do not represent fair market value.”
The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Taipan. As a result, Taipan cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and Taipan will only update or revise publicly any of the included forward-looking statements as expressly required by Canadian securities law.