Africa Oil discovers new reserves in two northern Kenya wells

Tullow Oil exploration director Angus McCoss. FILE

What you need to know:

  • The new discovery adds to the increasing commerciality of the oil reserves that reached a billion barrels earlier in the year.

Africa Oil, Tullow’s partner in northern Kenya exploration, Thursday announced it had discovered a total of 67 metres of oil at two wells. The combined depth was encountered at Twiga-2 and at Ekunyuk-1 wells in Blocks 10BB and 13T.

The new discovery adds to the increasing commerciality of the oil reserves that reached a billion barrels earlier in the year.

The announcement also comes a day after a London-based firm GlobalData issued a new long-term value estimate of at least Sh870 billion, or just about a quarter of Kenya’s total economic strength.

Earlier on, Twiga-1 had shown 30 metres of net oil pay in Block 13T. Twiga-2 has 62 metres of net oil pay while Ekunyuk-1 has five metres making a total of 67 metres, said the announcement.

“Some 62 metres of vertical net oil pay has been discovered in the Auwerwer formation [at Twiga-2], similar in quality to the initial Twiga-1 discovery,” said Tullow Oil in a statement quoting an announcement from Africa Oil.

It added that drilling operations on the Twiga-2 are continuing.

“The well is currently being deepened to evaluate the Lower Lokhone potential and a testing programme for this successful well is planned to be conducted later this year,” said Tullow Oil.

Ekunyuk-1 is located next to Etuko and Ewoi, where other oil discoveries were recently made.

“The Ekunyuk-1 well is located on the eastern flank, on trend with recent discoveries at Etuko and Ewoi. The well has now reached a final total depth of 1,802 metres and has encountered some five metres of net oil pay, within approximately 150 metres of reservoir quality water-bearing sandstone and an equal thickness of a basin-wide rich oil shale. This rig will now be moved to the Agete-2 location,” said the statement.

Tullow Oil exploration director Angus McCoss said the new findings — coupled with previous ones — had given the company insights as to the locations of future wells.

“The combined results from Twiga-2 and its successful sidetrack confirm the resource potential and have given us valuable insights for the locations of future exploration and development wells,” Mr McGross said.

The research and consulting firm GlobalData said that Block 10BB and 13T alone could generate about $10 billion (Sh870 billion) in revenue over a 30-year period of production based on regional geological characteristics and well test results.

Tullow and Africa Oil are involved in the exploration of oil in Kenya, with each holding 50 per cent shareholding in Block 10BB where resource-rich Lokichar is located.

The firms have discovered oil in several wells around the basin starting with Ngamia-1 in early 2012.

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