Tullow Oil Hits Second Discovery in Kenya

PUBLISHED: 26 Nov 2012 @ 20:00 | Comments (0) | More info about Kenneth G. Mondero

Independent oil and gas explorer and producer, Tullow Oil plc (LSE:TLW), has made its second oil discovery in Kenya, Africa but the find failed to spike market value.

In a statement issued today, the London-listed constituent of the FTSE 100 said the Twiga South-1 exploration well encountered 30 metres of net oil pay after drilling a depth of about 3,250 metres into Block 13T acreage, where it holds 50% interest.

Tullow also stated the drilling encountered a tight fractured rock section indicating hydrocarbon presence at a gross interval of 796 metres.

“This tight fractured rock section is a new play-type for the region that will require further evaluation to understand its extent and any productive potential,” the company said.

According to Tullow, the discovery further de-risked a number of leads bearing similar features on the western margin of the Lokichar Basin, a highly prospective region which forms part of the bigger East African Rift System.

“I am pleased to announce that our second well in our onshore Kenya rift basins campaign has also discovered oil. This immediate follow on discovery reaffirms the considerable prospectivity of the Lokichar Basin,” Tullow Oil’s Exploration Director, Angus McCross, commented.

Twiga South-1 well was the first oil discovery made by Tullow in the said licence and is the second in onshore Kenya, following the 100-metre net oil pay encountered at Ngamia-1A well located 22 kilometres to the south.

Tullow Oil is doing a multi-well drilling campaign around the said basin covering its acreages in both Kenya and Ethipia and is awaiting result from the Paipai-1 well in Block 10A due by the end of 2012 while another well is to be drilled around that time.

“There is much to look forward to as the exploration campaign and testing programme move ahead,” Mr. McCross closed.

Back in London, however, Tullow Oil’s share price was down 0.9% by 8:30 AM GMT, to £13.80, half an hour after trading commenced on the London Stock Exchange, as investors expressed disappointment on a less-than-expected oil pay.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @kennethgmondero

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.