Tullow Oil has made its fifth consecutive oil discovery since beginning drilling operations in Kenya last year.
The eastern African country is ranked as one of the continent’s high potential oil and gas regions and was mentioned by Tullow , last week as one of the territories from where it hopes to report progress during the first half of 2014.
Yesterday’s update said that drilling at the Irish-founded and London-based exploration company’s Agete-1 ‘wildcat’ well in the north of Kenya discovered and sampled moveable oil with an estimated 100 metres of net oil pay in good quality sandstone reservoirs.
Tullow operates the Agete-1 well with a 50% interest and Africa Oil (50%) has a non-operated interest.
This discovery de-risks several follow-on prospects located to the north and is on trend with the Twiga South, Ekales, and Ngamia oil discoveries and adds to the significant resource base already discovered.
“A fifth consecutive oil discovery onshore Northern Kenya highlights the emerging world-class exploration and production potential within our rift basin acreage. An intensive campaign for 2014 includes appraisal and exploration within this first basin and pioneering wells targeting the prospectivity throughout the entire chain of similar rift basins,” said Angus McCoss, Tullow’s exploration director.
“This latest result will clearly help to move the resource potential in this basin, alone, towards a near term target of 500 mmbo [million barrels of oil],” said Gerry Hennigan of Goodbody Stockbrokers.
Operations in Tullow’s two exploration blocks in Kenya recently resumed, following protests over jobs and benefits.
The company signed a memorandum of understanding with the Kenyan government, regional governors and community leaders to agree a long-term working arrangement in the area.
Earlier this month, in its latest trading update, Tullow said it remains on course to reach record oil production levels — across its entire portfolio — by the end of this year.
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