Africa Oil raises Turkana estimates to 1.3bn barrels
An oil rig at Ngamia 1 well in Turkana. PHOTO | FILE | NATION MEDIA GROUP
What you need to know:
2.9bn - The total number of oil barrels Africa Oil estimates to be available at the Lokichar and Mandera basins in Kenya.
Africa Oil has raised estimates in its northern Kenya exploration block to 1.3 billion barrels from the initial one billion. The explorer that co-owns several blocks with UK Tullow Oil said the new data emerged after it engaged independent consultant Gaffney, Cline & Associates of US. It now says in a report dated September 16 that the oil could be developed by early 2016.
The Lokichar basin’s 1.3 billion barrels brings the total estimate when put together with Africa Oil Mandera basin approximations, put at 1.6 billion barrels early this year, to a total of 2.9 billion barrels so far. Ngamia area, where oil was first discovered, is cited in the report as having the largest potential of 660 million barrels of oil with the Amosing coming second with 231 million barrels.
“Africa Oil is pleased to announce that an independent assessment of the company’s contingent resources in the South Lokichar Basin located in Blocks 10BB and 13T in Kenya has been completed,” the Canadian firm said in the report.
Agete and Twiga wells have 163 and 142 million barrels respectively, being the third and fourth largest among the wells where Africa Oil has at least 50 per cent stake in Kenya. “This level of resources exceeds the threshold for [commercial] development and we are targeting development sanction at the end of 2015/early 2016,” said Africa Oil chief executive Keith Hill in a statement included in the report.
The 1.3 billion barrel estimate is only for the South Lokichar basin and do not include those found at the Coast or in Wajir, where no independent evaluations have been done. Of the previous estimated one billion barrels around the Lokichar basin, 600 million barrels have been confirmed. Africa Oil and Tullow Oil had said last year this was enough for commercial development.
“The independent assessment was carried out in accordance with the standards established by the Canadian Securities Administrators,” said the report.
Africa Oil Corporation said development of the wells would start by early 2016 or late 2015. Mr Hill said the new estimates were based on the drilling and testing programme over the past year. The first discovery at Ngamia-1 was made in March 2012 with a string of others following later.
“The upcoming extended well tests at Ngamia and Amosing and the ongoing appraisal and core analysis programmes will provide additional data to support this understanding,” said Mr Hill.
The Africa Oil chief executive said exploration would continue with drilling of six new areas including in the central Kerio basin and at Ekosovan-1 well, which are located to the south of the Lokichar Basin.
“The company is pleased to announce that two key exploration wells have commenced drilling, the Kodos-1 well which is a basin opening well in the Central Kerio Basin and the Ekosowan-1 well,” said Mr Hill.
