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Wednesday 25 June 2014

Tullow & Africa Oil announce fresh oil and gas finds in Northern Kenya

British exploration firm Tullow Oil has discovered fresh oil and natural gas deposits even as its Canadian partner Africa Oil also announced that it had discovered gas at another site in northern Kenya.

Tullow has discovered 39 metres of net oil pay and 11 metres of net gas pay Ngamia-2 well which is 1.7 kilometres away from the Ngamia-1, the site of the country’s maiden find in early 2012.
Africa Oil, on the other hand, has discovered gas deposits in a 1,000 metre range at the Sala-1 site, adding that it will commence tests to ascertain the exact deposit amount and its viability.
The two discoveries, which come just a week after Australia’s Pancontinental Oil and Gas NL discovered oil in the Lamu Basin, collectively inch Kenya close to commercial production of both oil and gas.
“The success of the Ngamia-2 exploratory appraisal well builds on our major basin opening discovery well, Ngamia-1,” said Angus McCoss, the exploration director for Tullow Oil plc.
“The reservoirs were of similar quality and the well will be suspended for testing. With five rigs drilling in Kenya and Ethiopia, there is much to look forward to in the second half of the year."
Mr McCoss added that the rig has now been moved to continue drilling up to four more appraisal wells in the Ngamia area.
Tullow Oil is enjoying admirable success with its drilling program in northern Kenya, having already discovered oil at six other sites before the latest one at Ngamia-2.
In January this year, Tullow announced that it had discovered net oil pay of between 160 and 200 meters in Amosing-1 and of between 20 and 80 meters in Ewoi-1, both located in Block 10BB. Net pay is a measure of the thickness of an economically viable oil reservoir.
Tullow Oil has discovered a total of 600 million barrels of oil reserves at Block 10BB in the Lokichar Basin in Turkana County but recent discoveries has seen its raise the potential of the area to one billion barrels.
Tullow and Africa Oil each hold 50 per cent shareholding in Block 10BB, a resource-rich area.
Africa Oil, which has also in the past announced oil finds, Tuesday announced that, after drilling to a total of 3,030 metres in the Sala-1 site, it had discovered an area of interest of 1,000 metres.
The company revealed that the total area with potentially commercial viable gas deposits is 75 metres.
The Sala-1 site is in Block 9 which Africa Oil operates with Marathon Oil Kenya Limited BV, each owning a 50 per cent interest.
“An appraisal plan to follow up this discovery is currently being evaluated by the partnership in consultation with the Kenyan government,” said Keith Hill, the Africa Oil chief executive.
“Not only is there a great need for power in Kenya, there is also the potential for oil and for additional prospects on trend.”
The oil Mr Keith is referring to are deposits that the company found alongside those of natural gas during the exploration of Sala-1.
Africa Oil says “small amounts of oil were recovered during drilling and testing which indicates there may be potential for oil down-dip on the structure” which is proven true, would be a double score for the company.
Last week, Pancontinental Oil and Gas NL announced that it had discovered an oil column at one of its recently completed wells in the Lamu Basin, about 100 kilometres off the Mombasa coastline.
The find at the Sunbird well is said to be the first of its kind along the western Indian Ocean coast between South Africa and Somalia.
The exploration firm added that there were high prospect of finding commercial quantities in the area and that the implications of the find for regional oil exploration were “outstanding”.
Source Business Daily

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