Exploration firm Tullow Oil has reported a further oil discovery in Uganda, a day after the company suffered a setback in its bid to acquire assets in the east African nation belonging to Heritage Oil.
The Kasamene-2 appraisal well in the Butiaba region of Uganda Block 2 encountered 39 meters of net oil pay and 8 meters of net gas pay in a 132-metre gross interval.
Chief operating officers Paul McDade said the result was "outstanding".
"Encountering the largest net pay thickness in Butiaba to date is an outstanding result, confirming the lateral quality and extent of the Victoria Nile Delta reservoirs and enabling fast-tracked development of the Kasamene field. We continue to work closely with the Government of Uganda on plans for development and look forward to achieving early first oil from the basin," he said.
The company may face opposition on its plans to take over partner Heritage Oil's 50 per cent stake in two licence areas in Uganda's Lake Albert basin.
Uganda's government, which must approve the deal, yesterday said it would not allow monopolies in its energy industry.
Tullow is facing a key shareholder vote on its planned $1.5 billion (€1.06 billion) deal on Monday. Italian giant Eni has also offered $1.5 billion for the company's Ugandan interests, but Tullow has exercised its right of first refusal over any sale by its partner.
Additional reporting - Bloomberg