Taipan Resources Inc.

Taipan Resources Inc.

October 08, 2014 11:30 ET

Taipan Resources Secures Greatwall Drill Rig For The 251mmbbll Badada Well Onshore Kenya; Well Expected to Spud Year-End 2014

NAIROBI, KENYA--(Marketwired - Oct. 8, 2014) - Taipan Resources Inc. ("Taipan" or the "Company") (TSX VENTURE:TPN)(OTCQX:TAIPF) is pleased to announce that its wholly owned, Kenya based subsidiary Lion Petroleum Inc. has entered into a letter of intent with Greatwall Drilling Company of China to contract the GW-190 rig for its planned Badada well on Block 2B in north east Kenya. Taipan is fully carried by partners Premier Oil and Tower Resources Plc on the Badada well.

Ground has been broken on the Badada well site on Block 2B in the Anza Basin, where a water well is presently being drilled and site preparation underway in advance of the delivery of the rig. Taipan has also contracted or is in the process of contracting with a number of local Kenyan companies from the surrounding area for a range of services including site construction, road repair and the provision of food and other supplies.

It is anticipated the well will be spud between mid-December 2014 and mid-January 2015, and will take approximately 70 days to complete.

The Badada well is targeting 251mmbbl of oil in the Tertiary rift play where evidence suggests there is an oil-prone lower Tertiary source (Hothori-1 well, drilled in Taipan's acreage, in 1989). Taipan believes there is significant potential for an oil-prone Tertiary play in Block 2B and believes there are similar structural elements on this block when compared to the initial discoveries in the Lokichar basin of Kenya.

The Badada Prospect has been independently estimated by Sproule International Limited ("Sproule") to have Mean Gross Unrisked Prospective Resources of 251 MMBOE and High (P10) Estimate Gross Unrisked Prospective Resources of 498 MMBOE. The total estimated Mean Gross Unrisked Prospective Resources on Block 2B is 1,593 MMBOE based on 19 exploration leads(1).

The Anza Basin is one of the largest Tertiary-age rift-basins in the East African Rift system that together contain multi-billion barrel oil discoveries. Mr. Maxwell Birley, CEO of Taipan commented "We continue to believe that the 'sweet spot' of the Anza Basin is located on Block 2B. This is an exciting time for the Taipan team and for our shareholders as we prepare to spud this well later this year."

The Company will provide a further update upon the formal contracting of the GW-190 rig and mobilisation to the Badada-1 drill site and other operational progress in due course.

(1.)Sproule International Limited ("Sproule") completed an updated independent assessment of the Company's prospective resources on Block 2B with an effective date of December 31, 2013. 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.

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 km2) and a 20% working interest in Block 1 (5.497 million acres / 22,246 km2) which is operated by East Africa Exploration (Kenya) Ltd, a subsidiary of Afren plc.

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.

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