Gippsland signs farm-in for offshore Kenya block

Offshore staff

MELBOURNE, Australia -- Pancontinental Oil and Gas NL signed a farm-in agreement today whereby Gippsland Offshore Petroleum Ltd. will acquire 60% interest in Kenyan Production Sharing Contract L-6 offshore Lamu basin.

To earn the interest, Gippsland will conduct 2D seimsic, airborne gravity, and possibly geochemical acquisition programs by Feb. 23, 2007, at a cost of $1.9 million.

The surveying is scheduled to start on the 4,918 sq. km. tract upon Kenyan government approval.

8/29/06