Tullow Oil reports promising data in Kenya

Shares rise 4.2% in London as exploration company says find suggests ‘significant potential’

Oil exploration company Tullow Oil said on Tuesday that its Etom-2 well in Northern Kenya has encountered over 100 metres of net oil play in the best reservoirs in the basin so far.

Angus McCoss, exploration director, Tullow Oil, said that discovering this thick interval of high quality oil reservoirs “further underpins our development options and resource base”.

“ The result follows careful evaluation of 3D seismic data which was shot after the Etom-1 well and demonstrates how we have improved our understanding of the South Lokichar Basin. This result also suggests significant potential in this underexplored part of the block as it is the most northerly well we have drilled in South Lokichar and is located close to the axis of the basin away from the basin-bounding fault. Accordingly, we will review the potential of the greater Etom area and neighbouring prospects to decide on our forward programme.”

Tullow operates Blocks 13T and 10BB with 50 per cent equity and is partnered by Africa Oil Corporation, also with 50 per cent.

Tullow also reported that a flow test on the Ngamia oil field produced at a cumulative, stable rate of 2,400 bopd from five zones

In a note, Davy Stockbrokers said that “while appraisal and exploration activity may not be the current focus for investors, the results are very reassuring from a development perspective and can maximise value in the subsequent monetisation of discovered barrels.”