Tullow strikes oil in two new South Lokichar Basin wells

An oil rig at Ngamia 1 in Turkana. PHOTO | FILE

What you need to know:

  • Tullow said it found the Ngamia-7 appraisal well found 132 metres of oil net of costs of extraction (also called net oil pay) while the Ekales-2 appraisal well found net oil pay of between 50 and 70 metres.
  • Further drilling is set to be done in the Ngamia field and results from the exercise should give finer data on the area’s potential.
  • Tullow, however, struck a dry well on its northern Turkana block, the first exploration work it was doing in the area.

Tullow Oil said on Wednesday that it had found oil in two new wells in the South Lokichar Basin in Turkana.

An operations update by the UK explorer found that the Ngamia-7 appraisal well found 132 metres of oil net of costs of extraction (also called net oil pay) while the Ekales-2 appraisal well found net oil pay of between 50 and 70 metres.

The explorer said that the findings had increased the area’s potential.

“There is further good news from our appraisal programme in northern Kenya where the Ngamia-7 well has successfully tested and extended the eastern flank area of the oil field.

This result, and the promising initial flows from the Amosing oil field extended well test, give us further confidence in the size and scale of our two cornerstone fields for the development of the South Lokichar Basin,” said Tullow exploration director Angus McCoss in a statement.

Further drilling is set to be done in the Ngamia field and results from the exercise should give finer data on the area’s potential.

Tullow, however, struck a dry well on its northern Turkana block, the first exploration work it was doing in the area.

The Engomo-1 exploration well that was being drilled in Bock l0BA has shown no significant traces of oil and gas and has now been sealed.

Tullow said that there is still possibility of more work in the area since not much exploration work has been done there.

“Whilst we would have hoped for basin opening success in the North Turkana Basin’s first wildcat well, Engomo-1, we still have a vast amount of undrilled acreage with identified prospects and leads providing significant remaining exploration potential,” said Tullow exploration director Angus McCoss in a statement.

Drilling of the Engomo-1 well began in January and it came on the back of Tullow announcing another disappointing well.

At the time Tullow and its partner Africa Oil said that the Epir-1 well that was being drilled in the Kerio Basin also showed disappointing results.
Tullow and Africa Oil jointly own blocks 10BB, 13T and 10BA on an equal basis.

Both firms said that despite the disappointing results from their first exploration in northern Kenya they are still confident that the South Lokichar basin will continue to show signs of commercial viability as more work goes on.

“We are very encouraged by the continued strong results from the exploration and appraisal programme in the South Lokichar Basin, which are both growing the resource base and reducing uncertainty,” said Africa Oil chief executive Keith Hill.

Mr Hill added that the strong leads in South Lokichar will make it easier for Africa Oil and Tullow to attract funds for exploration which has become difficult in the last couple of months due to the falling price of oil on the international market.

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