24 June 2014

Kenya: More Oil, Gas Deposits Found in Turkana

Nairobi — Africa Oil, Tullow Oil's exploration partner in Northern Kenya has announced new gas and more oil deposits at Ngamia-2 well.

In a statement on Tuesday, Africa Oil said the well had encountered up to 39 metres of net oil pay and 11 metres of net gas pay.

The well was drilled to a total depth of 3030 metres and analysis indicated three zones of interest.

"The PR Marriott 46 rig has recently completed the Ngamia-2 well which was drilled 1.7 kilometres from the Ngamia-1 discovery well to test the northwest flank of the prospect," said Africa Oil, a Canadian oil and gas company with assets in Kenya and Ethiopia.

The well has however been suspended for testing as the rig continues to drill up to four additional appraisal wells in the Ngamia field area for an extended well test program.

With new gas discoveries, Africa Oil says there is a very strong market for gas development in Kenya and have already engaged in discussions with power companies and the government to potentially fast track a gas to power project.

"The discovery of indigenous gas in significant quantities in Block 9 has the potential to offer a far more cost effective fuel source for these power projects that will also provide positive environmental and local development benefits," Africa Oil CEO Keith Hill noted.

Apart from Ngamia other wells under exploration include Twiga, Agete, Amosing, Ekales, Etuko and Ewoi.

Commenting on the new developments, Tullow oil Exploration Director, Angus McCoss said the success of the Ngamia-2 well discovery builds on its major basin opening discovery well, Ngamia-1.

"With five rigs drilling in Kenya and Ethiopia, there is much to look forward to in the second half of the year," McCoss said.

In January this year, Tullow Oil announced two separate oil discoveries at Amosing-1 and Ewoi-1 exploration wells in Block 10BB in Turkana increasing its oil discoveries in the South Lokichar Basin to over 600 million barrels.


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