Premier Oil closes Kenyan well, partner cites failure to find hydrocarbons

Premier Oil revealed on Monday that it has officially left the Badada-1 exploration well in Kenya. The company drilled the well within budget, according to its statement, and plugged it in compliance with standard regulations.

The listed company gave no in-depth explanation as to why it deserted the well but its partner company Tower Resources claimed that it could not find commercial hydrocarbons.

Tower Resources chief executive officer (CEO) Graeme Thompson said: “Drilling results suggest that the section here is sandier than had been expected and the development of sealing claystones is less than had been hoped.

“This was always the principal risk for the play. We shall be evaluating the results of the well to assess the remaining prospectivity in this very large area.”

Tower held a 15% stake in the well while Taipan Resources obtained 30% of the well’s shares and Premier Oil held the majority share at 55%.