Kenya oil discovery lifts Tullow stock on London bourse
An oil rig at Ngamia 1 in Turkana County. Tullow on Wednesday announced fresh oil discoveries of net oil pay of between 160 and 200 metres in Amosing-1 and 20-80 metres in Ewoi-1, both located in Block 10BB. Photo/FILE
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Tullow on Wednesday announced that it had raised the estimated recoverable deposit of oil in Turkana’s Lokichar basin to one billion barrels.
The oil firm was priced at about 4.98 per cent higher in Tuesday’s trading at the London Stock Exchange at the time of going to Press.
Tullow’s share has hit a high of 1,270 British pence (about Sh1,800) in the past 12 months and a low of 818 pence.
UK exploration firm Tullow Oil’s shares rose sharply in Tuesday’s trading at the London Stock Exchange touching a high of 906 British pence (about Sh1,286) following announcement of significant oil finds in northern Kenya.
The company on Wednesday announced that it had raised the estimated recoverable deposit of oil in Turkana’s Lokichar basin to one billion barrels.
The oil firm was priced at about 4.98 per cent higher in Tuesday’s trading at the LSE at the time of going to Press, indicating positive investor reaction to the news of the Kenya exploration successes. It had moved about 4.8 million shares.
Tullow’s share has hit a high of 1,270 British pence (about Sh1,800) in the past 12 months and a low of 818 pence.
Tullow said on Wednesday it would shift its focus to the construction of infrastructure for tapping crude reserves in northern Kenya.
“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 to 2016,” Tullow chief operating officer Paul McDade said in a statement.
The firm said that drilling results from the Ekales-1 and Agete-1 wells, both located on the same block, show that the Lokichar basin could have as much as 600 million barrels of oil.
The latest discovery is the seventh successive successful find by Tullow, which now estimates that the basin could have as much as one billion barrels of oil.
Tullow said that it plans to drill 20 more wells in other oil blocks in the next two years. The Emong-1 well, adjacent to the Ngamia field and the Twiga South-2 appraisal well, both in Block 13T, are earmarked as the next drilling sites.
The British firm Jointly owns interests in Block 10BB, with Canadian exploration firm African Oil. The two have opted not to carry forward the partnership to the next drilling stage.
A frenzy of seismic studies and drilling is expected this year for which licensees have been raising cash and seeking financing partners. Simba Energy, EHRC Energy, Taipan Resources and Swala Energy have announced deals that involve selling equity stakes ahead of exploration.
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