British multinational Tullow has made a new oil discovery in the South Lokichar Basin in the Rift Valley and doubled oil production estimates for two other prospects.
In a statement released Wednesday morning, Tullow said that it had struck oil in Etuko-1 following drilling that commenced in May.
“These results are an important step towards understanding the commerciality of the Lokichar Basin and, as we advance towards the commercial thresholds for development, Tullow continues to work in consultation with the Government of Kenya on development options,” read the statement in part.
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Additionally, the latest testing data from the Twiga South-1 and the Ngamia-1 has seen Tullow upgrade its estimates for the oil production potential for both discoveries. The company now estimates a flow potential of about 5,000 barrels of oil per day (bopd) per well.
Further, the potential for both discoveries is now estimated at 250 million barrels of oil but could shoot up upon further appraisal.
“In Kenya, we have significantly upgraded our resource estimates for the South Lokichar Basin following the highly successful flow testing of Ngamia and Twiga-South,” said Tullow chief executive, Mr Aidan Heavey.
Tullow first struck oil in Kenya in March last year raising hopes that the country could be headed for a new era of mineral wealth.
In Uganda, Mr Heavey says that Tullow is expected to sign a Memorandum of Understanding (MoU) with the government for the development of oil strikes in the Lake Albert Basin.
The company said that these developments were indicative of successful operations in the first half of the year as well as positive outlook for the second half of the year and for 2014. Tullow is expected to release its half year results on July 31.
(Read: Tullow eyes commercial oil production in Kenya)