Africa Oil strikes 200m of oil raising Lokichar Basin hopes

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The drillers of the Ngamia well will now go into further testing to establish, amongst others, the flow of oil per day.
With the extensive appraisal in Kenya, Africa Oil said discoveries and testing so far made “will enable a draft Field Development Plan (FDP) to be prepared by end 2015” – meaning a preliminary plan for production of oil will be done this year.

Africa Oil says Ngamia-8, a well in the Lokichar Basin co-owned with Tullow Oil, has yielded 200 metres of oil improving the prospect of more finds in the region.

The firm also announced the Amosing-4 well in the same basin had been drilled and had successfully encountered 27 metres of net oil pay.

The firm added that testing of the flow in Amosing-1 and Amosing-2 wells – where oil was earlier discovered – had been completed, indicating a maximum rate of 5,600 and 6,000 barrels of oil daily respectively. The flow exceeded expectations according to the explorer.

Africa Oil owns a 50 per cent working interest in Kenya’s Blocks 1BB and 13T with Tullow holding the balance.

The drillers of the Ngamia well will now go into further testing to establish, amongst others, the flow of oil per day.

“Ngamia-8 will be completed as part of the Ngamia field extended well testing (EWT) planned for mid-year, which will also include the Ngamia-3 and Ngamia-6 wells,” said the firm.

Extensive appraisal programme in the South Lokichar Basin is continuing, including for Amosing wells. The company said the new Amosing-4 had shown the field containing oil could be more extensive.

It said the discovery of oil at Ekales-2 appraisal well—estimated at 60-100 metres of net oil pay—was “very positive for the future upside potential of the South Lokichar basin above the significant oil resources already discovered.”

READ: Tullow strikes oil in two new South Lokichar Basin wells

With the extensive appraisal in Kenya, Africa Oil said discoveries and testing so far made “will enable a draft Field Development Plan (FDP) to be prepared by end 2015” – meaning a preliminary plan for production of oil will be done this year.

“The current ambition of the joint venture partnership is to position the East Africa project, which will include the development of South Lokichar and Tullow’s Lake Albert resources and an export pipeline, for possible sanction (to proceed to development) by the end of 2016, subject to receipt of all necessary permits and approvals,” said Africa Oil.

It said progress was being made towards development of the oil resources, noting that there was ongoing collaboration between the governments of Kenya and Uganda on the oil export pipeline.

“We continue to be highly encouraged by the appraisal programme in the Lokichar Basin which is above our expectations and confirms our belief that this is a world-class asset. We are working closely with our partners and the Kenyan government to move the development project forward, particularly the export pipeline, which is the key to unlocking the value of this asset,” said Keith Hill, president and CEO of Africa Oil in the update.