Tullow Oil delivers positive update on drilling onshore Kenya

Tullow Oil has delivered a mostly positive update on its drilling activities onshore Kenya, with testing on a number of wells showing the presence of hydrocarbons.

Drilling on the Ngamia-5, Ngamia-6 and Amosing-3 appraisal wells all encountered net oil pay and the sites have been suspended for further development activities.

“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,” said exploration director Angus McCoss.

Drilling of the Epir-1 exploration well in the North Kerio Basin encountered oil and wet gas shows over non-reservoir quality rocks. Tullow said that while it did not result in a discovery, drilling “demonstrat[ed] a working petroleum system in this lacustrine sub-basin” and further exploration will be considered nearby following analysis.

"The Epir-1 wildcat well proved the existence of a working oil system in the North Kerio Basin, encouraging us to consider further exploration activities,” McCoss said.

Drilling of the Engomo-1 well, the first test of the prospective North Turkana Basin, has started and results are due in early March.

Meanwhile, the company has acquired a large 951 square km 3D seismic survey over a series of significant oil discoveries in the South Lokichar Basin, Tullow said.

“Initial evaluation of the 3D seismic data indicates significantly improved structural and stratigraphic definition and additional prospectivity not evident on the previous 2D seismic data.”

Shares were up 0.8% at 387.4p by 08:18 on Thursday.