The announcement of new oil discovery in Etuko-1 by London based oil Company, Tullow Oil has seen the firm’s share value rise three per cent after a fall last year. The fall owed to a weaker resources sector saw the listed firm loose around a fifth of its value.
The firm who have been on the search for the resource in the Northern part of the country announced the new discovery moving closer to commercial production of oil in the country.
The test on the Etuko-1 well which was first of the Basin Flank Play in the South Lockichar confirm a new oil discovery with net pay of over 40 metres in the Auwerwer and Upper Lokhone targets.
Tullow also announced that the tests on Ngamia-1 and Twiga South wells in the Lokichar basin show that they hold more than 250 million barrels of oil further increasing the firm’s resource estimate.
“Analysis of the test data from both the Ngamia-1 and Twiga South-1 wells has resulted in the doubling of our previous estimates of net oil pay to 200 metres and 75 metres respectively, an optimised flow rate potential of around 5,000 bopd per well and significantly increased discovered volumes.”,said a statement by Tullow Oil.
The firm also announced encounters of oil and gas at the Sabisa-1 well in Ethiopia. Drilling on the Ekales-1 well is expected to begin in late July this year.
The company, with partner Africa Oil, will drill about 10 wells this year in Kenya and Ethiopia to explore the Turkana Rift Basin. It plans 20 wells worldwide in the second half of the year, including in Mozambique, Mauritania, French Guiana and Norway.
Other players who have joined the hunt for oil in the country are Adamanging and Bowleven Oil & Gas from Britain as well as ERHC. Adamanging and Bowleven will prospect in Turkana North and Kibish districts while ERHC will have their activities set in Turkana West and Loima districts.
Aerial exploration is set to start next month in an effort to determine if the oil hunt is viable. Exploration in Block 12(A) in Kerio Valley, shores of Lake Turkana and Indian Ocean is however ongoing.