Tullow, Africa Oil discover more oil in Northern Kenya

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Tullow Oil and Africa oil have announced that they have struck more oil in North Western Kenya at the Amosing 3, Ngamia 5 and Ngamia 6 appraisal wells.

According to Africa Oil Ngamia-5 which is located 500 metres northeast of the Ngamia-1 discovery well in a different fault compartment and encountered 160 to 200 metres net oil pay, which is amongst the highest of all the wells drilled in the basin to date. while Ngamia-6 which is located approximately 800 metres north of Ngamia-1 and in the same fault compartment as Ngamia-5 and encountered up to 135 metres net oil pay.

The two wells which were drilled by the PR Marriott 46 rig have been suspended and one or both will be utilized in an Extended Well Test (EWT) that will commence in the second quarter. Pressure data from the Ngamia-3, 5 and 6 wells demonstrates connectivity between the wells at multiple reservoir horizons, which will be further tested by the EWT.

At the Amosing-3 appraisal well, located 1 kilometre northwest of the Amosing-1 discovery well up to 140 metres of net oil pay was encountered and proved an extension of the field.Pressure data from Amosing-3 indicates connectivity in some reservoir horizons encountered in the Amosing-1, 2 & 2A wells.

“We are very encouraged by the excellent well results from our recent appraisal program at Ngamia and Amosing and we will shortly be commencing Extended Well Tests at both fields, which should further improve reservoir definition,” says Africa Oil CEO Keith Hill.

At the Epir -1 exploration well which was drilled by the Weatherford 804 rig to a total depth of 3,057 metres in the North Kerio Basin in Kenya Block 10BB a 100 metre interval of wet hydrocarbon gas shows was encountered with florescence indicating the presence of an active petroleum system. The exploration well has however been classified as a non-commercial discovery.

The hydrocarbon shows were encountered primarily in rocks which are not of reservoir quality.

“The hydrocarbon shows we have seen in the Kerio Basin are also very encouraging and prove we have a new basin with a working hydrocarbon system. We will be focusing our evaluation on identifying a prospect in that basin with a high chance of a robust trap and better quality reservoirs,” he adds.

The two joint partners say they are encouraged the Epir-1 well has demonstrated a working hydrocarbon system in the Kerio Basin and technical work will now focus on identifying a prospect in the basin where there is a high chance of trapping hydrocarbons in reservoir quality rock.

The Weatherford 804 rig will now be moved to drill the Ekales Deep prospect in Kenya Block 13T, which will test a large prospect in a separate fault block to the east of the Ekales oil discovery in the South Lokichar Basin.

“The Ekales-2 exploratory appraisal well is a bold step-out away from the South Lokichar Basin bounding fault with follow up potential. Continued success in the appraisal of the Ngamia and Amosing oil fields is highly encouraging as we continue with development studies for the South Lokichar Basin,” says Tullow Oil exploration director Angus McCoss.

The PR Marriott 46 rig on the other hand will now move to drill Ngamia-7, which will test a large potential eastern extension of the field identified from the new 3D seismic survey.

The SMP-5 rig has successfully run the Amosing-2A production completion and is currently running the Amosing-1 production completion in preparation for an EWT, where production and injection interference testing will help provide dynamic flow characterization of the Amosing field stacked reservoirs.

Initial production clean-up of both wells will commence around the end of January and data from the EWT should be available in the second quarter. .

Meanwhile acquisition of the large 951 square kilometre 3D seismic survey over the series of significant discoveries along the western basin bounding fault in the South Lokichar Basin has completed and the full fast track processed data set will be available in the next few weeks.

According to the partners initial evaluation of the 3D seismic indicates significantly improved structural and stratigraphic definition and additional prospectivity not evident on the 2D seismic.

In addition an extensive program of detailed core analysis is ongoing after the acquisition of 1,100 metres of whole core from the South Lokichar wells that will better assess oil saturation and to refine the recovery factors of the main reservoir sands as well as provide results from the first quarter onwards.

Hill has also dispelled fears that there will be a slow down in exploration activity in Kenya saying the partners are well positioned to weather the current downturn in oil prices with no debt, primarily discretionary spending and low operating and development costs.

“Our goal in 2015 will be to keep the project moving forward while being financially conservative until oil prices show signs of recovery. We are also working closely with partners and host governments to move the pipeline project forward and resolve remaining tax and fiscal issues in the new pricing environment,” he concluded.

Africa Oil owns a 50% working interest in Kenya Blocks 10BA, 10BB and 13T with Operator Tullow Oil holding the remaining 50%.

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