Tullow Oil says finds more oil in Kenya well

Mon May 7, 2012 10:36am EDT
 
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By Kelly Gilblom

NAIROBI (Reuters) - Tullow Oil (TLW.L: Quote) has found more oil in a well it is drilling in Kenya and plans to drill another well in an adjacent block later this year, the Africa-focused British firm said on Monday.

Tullow said in March it had struck oil in the well in northern Kenya, the country's first-ever oil discovery.

Kenya and its neighbors in east Africa, as well as the Horn of the continent, have become a hot spot for oil and gas exploration in recent years, spurred by new finds in countries including Uganda, Tanzania and Mozambique.

While it is yet to strike commercial deposits, the discoveries by Tullow and its partner Africa Oil Corp AOI.V on Block 10BB in Kenya's far northern county of Turkana has increased exploration interest in the east African country.

Tullow said it had encountered a total net oil pay in excess of 100 meters across multiple reservoir zones in the Ngamia-1 well, over a gross oil-bearing interval of 650 meters. The well has so far been drilled to a depth of 1,515 meters.

Tullow had said in March it had encountered in excess of 20 meters of net oil pay after drilling to a depth of 1,041 meters.

"Many leads and prospects similar to Ngamia have been identified and following this discovery the outlook for further success has significantly improved," it said in a statement.

After the announcement, shares in Africa Oil rose 27 percent to trade at 7.38 Canadian dollars as of 1425 GMT. Tullow shares were not trading due to a public holiday in London.   Continued...