Tullow reports successful appraisal

Exploration firm Tullow Oil said an appraisal well in Uganda was successful, encountering over 40 metres of net oil bearing reservoir in two zones.

The Ngiri-2 appraisal well, which is located in the Butiaba region of Uganda Block 1, is the first of a multi-well appraisal programme and was drilled 1.7 km north of the Ngiri-1 discovery well to a total depth of 892 metres.

In a statement today, the company said pressure data acquired within the upper zone indicates the possibility of a deeper contact than expected.

"The 40 metres of net oil pay in Ngiri-2 is the thickest oil pay so far encountered in the Butiaba area, demonstrating that after 32 successes in 33 wells the Lake Albert Rift Basin continues to deliver from the undrilled upside potential," said exploration director Angus McCoss.

Tullow operates interests in three licences, Blocks 1, 2 and 3A, in the Lake Albert Rift Basin in Uganda. Yesterday,  it confirmed it had completed the acquisition of Heritage Oil's assets in the project.

The 50 per cent interest cost Tullow $1.35 billion (€1.1 billion), with an additional contractual settlement amount of US$100 million.

Tullow now plans to bring in China National Offshore Oil Corp (CNOOC) and French firm Total to develop the Uganda project, with each taking equal shares in the licence.