Tullow Oil, Africa Oil strike more oil in Kenya’s Blocks 10BB and 13T

The Ngamia field continued to register positive results with the Ngamia 7 appraisal well which was drilled to test the Ngamia oil field’s eastern flank encountering up to 130 metres of net oil pay while Ngamia-8 appraisal encountered up to 200 metres of net oil pay in line with pre-drill expectations.

According to the joint venture partners the Ngamia 8 well which was positioned in the centre of the Ngamia structure and static pressure data indicates the well is in pressure communication with the oil discovered in the neighbouring Ngamia-1A, Ngamia-3, Ngamia-5, Ngamia-6 and Ngamia-7 wells.

Ngamia -8 will be completed as part of the Ngamia field EWT planned for mid-year which will also include the Ngamia-3 and Ngamia-6 wells.

In the Lokichar basin the Ekales-2 appraisal well reached a total depth of 4,059 metres and encountered an estimated 60-100 metres of net oil pay in the primary shallower objectives.

The highly deviated well was also deepened to test the basin centre stratigraphic play where it intersected sandstones with elevated pressures and 50 metres of oil bearing sands, however operating conditions precluded logging and confirmation of any oil pay in this section.

This was the first test of this exploration target and is very positive for the future upside potential of the South Lokichar basin above the significant oil resources already discovered.

Still in the Lokichar basin the Amosing-4 appraisal well was drilled on the flank of the field and successfully encountered 27 metres of net oil pay in thick upper reservoir zones proving the significant down-dip extent of the field.

Amosing -1 and Amosing -2 wells have also been completed in five zones with hydraulically controlled completions that permit independent tests of selected intervals without well intervention in preparation for an Extended Well Test (EWT) of the field.

Initial rig-less flow testing during clean-up at a combined maximum rate of 5,600 and 6,000 bopd respectively exceeded expectations, demonstrating high quality reservoir sands which flowed 31 to 38 degree API dry oil under natural conditions.

The EWT involves production and water injection testing to enable dynamic flow characterisation between wells in the Amosing stacked oil reservoirs.

“Operationally, we have performed well with good progress in Kenya in the South Lokichar Basin,” says Aidan Heavey, Chief Executive Officer in his latest AGM update released today.

The partners say that a full EWT will commence shortly and results are expected over the next few months.

The extensive appraisal activities in Kenya, including the planned EWT, along with the development concept studies completed in 2014 will enable a draft Field Development Plan (FDP) to be prepared by end 2015.

The partners say their current ambition of the joint venture partnership is to position the East Africa project, which will include the development of South Lokichar and Tullow’s Lake Albert resources and an export pipeline, for possible sanction by the end of 2016, subject to receipt of all necessary permits and approvals.

According to Africa Oil CEO Keith Hill the partners are now working to move the development project forward, particularly the export pipeline.

“We continue to be highly encouraged by the appraisal program in the Lokichar Basin which is above our expectations and confirms our belief that this is a world-class asset. We are working closely with our partners and the Kenyan Government to move the development project forward, particularly the export pipeline, which is the key to unlocking the value of this asset. The 3D seismic has been a great help in imaging new drilling targets in the basin and we plan to drill some high impact wells with the potential to add significant resources in the coming months,” says Hill.

He adds that independent technical studies being undertaken by the adviser, with extensive support from the Kenya and Uganda upstream partners, are progressing rapidly and should assist in the finalisation of the pipeline route.

Tullow Oil is the operator in Blocks 10BB and 13T holding 50% working interest while Africa Oil owns the remaining 50% working interest.