Tullow Oil wells pass viability limit

TULLOW OIL has confirmed that it has passed the necessary threshold of oil capacity at its Ugandan-based operations to make drilling work there commercially viable.

The Irish exploration company’s latest drilling update for its Giraffe-1 well has shown the largest oil discovery to date in the Lake Albert Basin area of Uganda.Recent drilling has led Tullow to believe that the combined Giraffe/Buffalo area in the country contains 300 million barrels of oil, with potential for double this amount.The company said yesterday that latest results “reduce the risk in several other large targets in the area and comfortably pushes the oil resource inventory in the area over the threshold set for commercialisation.” This threshold is understood to be 400 million barrels.