Hoima — Tullow Oil, one of the firms exploring oil in the Albertine grabben, anticipates more oil around the Ngassa prospect.

This is contained in the company's half-year results for the six months ended June 30, which were published on the company's official website in a statement dated August 26.

The company said drilling data indicates that one of its key prospects, Ngassa in Uganda, may contain significant oil resources.

The Ngassa-2 well found signs of oil in two reservoir intervals at higher pressures than normal, given that the maximum reservoir area is over 150 square kilometres.

"This could indicate the possibility of a significant discovery," the company said.

The statement added that oil explorers are still evaluating the well and will provide more conclusive results in a few weeks.

The company said the data obtained from the field indicates that the Buffalo-Giraffe field has a 300 million barrel gross discovery.

Over the next 12 months, Tullow plans to drill exploration and appraisal wells in Cote d'Ivoire, Ghana, Sierra Leone and Uganda, which have the potential to add material resources. Analysts estimate that Ngassa could contain another 600 million barrels of oil equivalent.

Tullow oil's Chief Executive Aidan Heavey, was delighted by the prospects

"It has been a good first half. Our development projects are on target, our exploration campaigns continue to deliver material discoveries and we have strengthened our balance sheet to maintain financial flexibility" he said.

He said Tullow Oil is well positioned for significant production growth from 2010 and beyond.

Meanwhile, Tullow plans to sell down part of its 100 per cent stake in Block-2, one of three blocks, which cover the Ugandan side of Lake Albert, in the next 12 months, Mr Heavey said yesterday.

"We'll start looking (for a partner) in the next few months," Mr Heavey told Reuters in a telephone interview. "A partner would be somebody who would help in relation to the development plans for the basin," he said.

Tullow and Heritage Oil, its partner in adjoining blocks, need to construct an expensive pipeline, and possibly a refinery, to bring the output to international markets.