Tullow looks forward after ‘significant’ oil find in Uganda
The company has a 50% interest in the area, and will now move drilling to other prospects in the area.
Davy stockbrokers said yesterday: “We believe that other prospects and leads in the basin will now attract a smaller risk premium.
“The group has decided not to test this well on its own.
“Instead, it may be tested if additional discoveries are made. This suggests a relatively small discovery size for the Mputa-1 well which on its own is sub-commercial. Still, in all regards this deserves to be seen as a breakthrough well for Tullow.”
In accordance with the planned drilling programme for block two, the well will be plugged and abandoned upon completion of the wireline sampling programme. Any production testing of Mputa-1 will be considered in conjunction with future drilling.
The rig will then move approximately 20km to the north-east of Mputa-1.
Chief executive of Tullow, Aidan Heavey said: “The initial results of the Mputa-1 well are very significant in that they prove the existence of a working petroleum system in the Albertine Basin where Tullow has a 50% equity interest throughout.
“We now look forward to the drilling of the Waraga-1 well in Block 2 and the Kingfisher prospect in Block 3A.”
