Kampala — NEPTUNE petroleum has announced plans to drill a second oil exploration well in the West Nile region. The drilling has been fixed for early next year, according to a statement from the company.

The move follows the re-evaluation of data from Iti-1 well, which was abandoned in June, for lack of commercially-viable reservoirs. Named after the tamarine tree, dominant in the area, Iti-1 was designed to be drilled up to 650metres but results were disappointing just before the target could be reached.

Drilling was done to a total depth of 592 meters but no producible reservoir sands were said to have been encountered. However, Peter Kingston, the Neptune executive chairman, said fresh analyses and interpretations carried out by independent experts using germane laboratories in the UK had rejuvenated the potential in the Iti structure.

"We were surprised and disappointed at the initial findings of the Iti-1 well," Kingston said in a September 21, statement.

Among other findings, detailed inspection of wireline pressure data indicated the basal reservoir could be oil bearing. Independent inspections of the rock cuttings by an expert sedimentologist and specialist laboratory analyses also confirmed the presence of clean reservoir sands.

The sands were found to have good porosities and permeabilities, in the interval just above basement (between 540 metres and 575 metres). Kingston said the outcome of the reassessment now provided "great encouragement" for the rest of Exploration Area 5.

He revealed that discussions with the Government had began, to jointly agree on the significance of the updated results.