Tullow finds oil, gas reserves in Uganda

Exploration company Tullow Oil said it has found oil and gas reserves in an exploration well in Uganda.

The company said drilling at the Kasamene-1 well in the Butiaba region had discovered over 31 metres of net oil and at least 6 metres of net gas.

Tullow said testing had indicated the reservoir quality was "excellent". "The most likely gas column is over 35 metres and the most likely oil column is over 75 metres," the company said.

However, the company said it had failed to find additional hydrocarbons in deeper sections of the Kingfisher-2 well.

This site was drilled to 3,906 metres. Aidan Heavey, Tullow chief executive, said
while drilling in the "Kingfisher-2 well at this location did not find additional hydrocarbons, this well has proved a significant discovery."

"These results increase our confidence of quickly achieving the reserve volumes required for a major development".

Stockbroker Davy said in a research note that the drilling results were “mixed” and led it to cut its net asset value per share by 24 pence to 997 pence.