Oil & Gas: Tullow Finds More Oil Deposits In Another Kenyan Exploration Block
Africa-focused British exploration company Tullow announced on Wednesday that is had discovered more oil deposits in the country’s rift valley region.
The UK-based company, which first discovered oil in the northern part of the East African nation, said in a statement that it had ” good oil shows across a gross interval of over 700 metres”.
“We believe this encouraging initial result has the potential to open up a second prolific basin in Kenya,” it added.
Tullow and its partner Africa Oil discovered an estimated 600 million barrels of recoverable resources in South Lokichar, Northwest Kenya, but has been slow to move to production due to the prevailing low oil prices globally that could hurt revenue.
Tullow shares spiked by more than 4.5 percent after the explorer reported the second find in Kenya’s Kerio Valley Basin, The Telegraph reported.
“This is the most significant well result to date in Kenya. Encountering strong oil shows across such a large interval is very encouraging indeed. I am delighted by this wildcat well result and the team are already working on our follow-up exploration plans for the Kerio Valley Basin,” said Tullow exploration boss Angus McCoss.
Kenya, Uganda, Tanzania and Mozambique are in a race to start exporting their oil and gas oil deposits, but have been held back by low prices and setbacks in the construction of a require infrastructure including pipelines, roads and rails.