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Tullow Oil finds more oil in Kenya

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By TFN Reporter

Tullow Oil plc (“Tullow”) have discovered more oil at the Amosing-1 and Ewoi-1 exploration wells in Block 10BB onshore northern Kenya. Turkana County Governor Joseph Nanok must ensure oil exploration continues uninteruptedTurkana County Governor Joseph Nanok must ensure oil exploration continues uninterupted

As a result of these latest successes and recently reported discoveries at Ekales-1 and Agete-1, Tullow has updated its estimate of discovered resources in this basin to over 600 mmbo.

Tullow believes that the overall potential for the basin, which will be fully assessed over the next two years through a significant programme of exploration and appraisal wells, is in excess of one billion barrels of oil.

“Exploration results to date from the first basin, amongst a chain of basins, have proven that Tullow's onshore acreage in northern Kenya has the potential to become a significant new hydrocarbon province,” said Angus Mccoss, Tullow Oil Plc Exploration Director, when he announced the new discoveries Wednesday.

“The programme of over 20 wells we have planned across our licences over the next twenty four months should materially add to the 600 mmbo discovered to date through a combination of exploration and appraisal. With up to five other analogous basins being tested during this programme, Tullow has the opportunity to increase Kenya’s resources significantly beyond today’s estimates.”

The company says the Amosing-1 and Ewoi-1 discoveries in Block 10BB continue Tullow’s 100 per cent success record in the basin with seven out of seven discoveries to date.

“The results to date are extremely positive for achieving a commercial development from the discoveries made in this basin,” says Mr Paul McDade, Tullow Oil Plc Chief Operating Officer.

“We will now be working with the National and County Governments with the aim of progressing both the upstream development and the associated export pipeline to project sanction in the period 2015/2016. There is clearly scope for the development to be expanded if there is further exploration success in other basins.”

The company says based on results of drilling, wireline logs and samples of reservoir fluid, the Amosing-1 well has intersected net oil pay of between 160 and 200 metres, significantly exceeding Tullow’s pre-drill expectations.

“The Ewoi-1 well has encountered net pay of 20 to 80 metres and has continued to de-risk the basin flank play opened up by the Etuko-1 well in 2013,” says the London-based company.

“Following completion of logging operations the wells will be suspended for future flow testing to confirm the net pay counts. The rigs will then move to drill the Emong-1 well, adjacent to the Ngamia field and the Twiga South-2 appraisal well, both in Block 13T. The partnership has elected not to continue into the next exploration phase in Block 10A in Kenya.”

The company reveals that given the significant volumes discovered and the extensive exploration and appraisal programme planned to fully assess the upside potential of the basin, Tullow and partners have agreed with the Government of Kenya to commence development studies.

In addition, the partnership is involved in a comprehensive pre-feed study of the export pipeline. The current ambition of the Government of Kenya and the joint venture partnership is to reach project sanction for development, including an export pipeline, in the period 2015/2016.

Tullow operates both the Amosing-1 and Ewoi-1 wells with a 50 per cent interest and Africa Oil has a 50 per cent non-operated interest.

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