By Ross Kelly
SYDNEY--An exploration well offshore Kenya that earlier tapped
natural gas has been drilled to its total depth and no more has
been discovered, Origin Energy Ltd. (ORG.AU) said Wednesday.
Apache Corp. (APA) operates and owns 50% of the acreage
containing the Mbawa-1 well, while Origin owns 20%, Tullow Oil PLC
(TLW.LN) 15%, and Australia's Pancontinental Oil & Gas Ltd.
(PCL.AU) the remaining 15%.
Pancontinental said Tuesday that the well had encountered a 52
meter net gas column above its target depth, and that drilling was
continuing. Origin on Wednesday confirmed the well had intersected
a net gas column of 51.8 meters, but additionally disclosed that it
was spread across three separate zones.
"Origin is encouraged that a reservoir containing hydrocarbons
has been discovered and a detailed analysis of subsea information
will take place in the coming months to guide future activities in
the area," Origin said in its statement.
Mbawa-1 is the sixth exploration well to be drilled offshore
Kenya, according to consultancy Wood Mackenzie. Although some oil
and gas shows were registered with previous wells, there have been
no previous commercial discoveries.
The gas discovery at Mbawa-1 boosts hopes the East African
nation may have commercial reserves after big finds in nearby
Mozambique and Tanzania.
-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692;
Ross.Kelly@dowjones.com
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