Oil absent at Tullow Oil's Uganda exploration well

Oil producer Tullow Oil has undertaken exploration at a well in Uganda and admitted that no hydrocarbons were found present.

Oil producer Tullow Oil has undertaken exploration at a well in Uganda and admitted that no hydrocarbons were found present.

The FTSE 100-listed company reported that exploration drilling had continued in the Total-operated EA-1A block to the north of Lake Albert, with the Ondyek-1 exploration well, located 16km northwest of the Nigiri-1 oil discovery.

The well, designed to test the boundary limits of the EA-1A block, was drilled to a total depth of 1,462m.

The company reported: "The well did not encounter hydrocarbons and has been plugged and abandoned."

It added that further evaluatuion was being carried out on the Lyec- discovery and said that partners were re-evaluating the remaining exploration potential of the area in light of recent well results.

A separate testing programme carried out at a project in Kenya showed a constrained combined rate of 2,812 barrels of oil per day from three reservoir zones.

The company added that two additional zones were also tested in the tight reservoir rock at the base of the well and both produced at sub-commercial rates but confirmed the presence of movable oil.

Angus McCoss, Exploration Director of Tullow Oil, said: "While it is still early days for our exploration campaign in Kenya, these flow tests results at Twiga South-1 are an important step on the way towards understanding the commercial potential of the two discoveries we have made so far.

"The Ondyek-1 well in Uganda did not encounter hydrocarbons, but has contributed much to our understanding of the limits of the EA-1A block."

MF

Recommended

Delivering profits : should you buy Royal Mail shares?
Share tips

Delivering profits : should you buy Royal Mail shares?

The volume of parcels delivered by Royal Mail soared during the pandemic, and so did its profits. But it has been coming under pressure lately. So, as…
19 May 2022
Avoid easyJet shares – there are better airlines to invest in
Share tips

Avoid easyJet shares – there are better airlines to invest in

EasyJet used to be one of Europe’s most impressive airlines. But now it is facing challenges on all fronts and losing out to the competition. Rupert …
19 May 2022
Tech stock crash – dotcom bust 2.0 is upon us
Tech stocks

Tech stock crash – dotcom bust 2.0 is upon us

It’s carnage in the tech sector as the market crashes. But that spells opportunity for canny investors, says Matthew Lynn
19 May 2022
Three things you should learn from Bill Ackman's brilliant Netflix trade
Investment strategy

Three things you should learn from Bill Ackman's brilliant Netflix trade

Hedge fund guru Bill Ackman has lost $400m selling Netflix shares. John Stepek explains why this was a brilliant trade, and outlines three things that…
19 May 2022

Most Popular

Get set for another debt binge as real interest rates fall
UK Economy

Get set for another debt binge as real interest rates fall

Despite the fuss about rising interest rates, they’re falling in real terms. That will blow up a wild bubble, says Matthew Lynn.
15 May 2022
Is the oil market heading for a supply glut?
Oil

Is the oil market heading for a supply glut?

Many people assume that the high oil price is here to stay – and could well go higher. But we’ve been here before, says Max King. History suggests tha…
16 May 2022
Value is starting to emerge in the markets
Investment strategy

Value is starting to emerge in the markets

If you are looking for long-term value in the markets, some is beginning to emerge, says Merryn Somerset Webb. Indeed, you may soon be able to buy tra…
16 May 2022