Tullow Oil reports 'very encouraging' flow tests at Ngmamia-1 well

published 30 April 2013

The production of oil at FTSE 100-listed Tullow Oil's Ngamia-1 well in Kenya has been described as 'very encouraging' with the first of six well tests flowing at 281 barrels of oil per day (bopd).

In an operational update on its East African interests, the mining group reported that the test had been carried out in the Lower Lokhone formation using a progressive cavity pump.

It said that the other tests were to be carried out in the Auwerwer reservoirs, formerly the Upper Lokhone, which the group said had produced "very well" in recent tests at the Twiga South-1 well.

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Tullow operates the Ngamia-1 well and Africa Oil has a non-operated 50% interest.

Ethiopia well: Hydrocarbons discoveredIn Ethiopia, the group reported that the Sabisa-1 well had encountered hydrocarbons requiring logging and further evaluation. It said that the well had been drilled to a total depth of 1,810 metres.

Hydrocarbon indications in sands beneath a thick claystone top seal were recorded whilst drilling, but the group said that hole instability issues required the drilling of a sidetrack to comprehensively log and sample the zones of interest.

Tullow, which has a 50% stake, is the operator of this well with Africa Oil owning a 30% stake and Marathon Oil having a non-operated 20% interest.

Angus McCoss, Exploration Director of Tullow Oil, commented: "The Sabisa-1 well has proved to be technically challenging, as is often the case in frontier basins, and the well now requires a side-track to redrill, log and sample the objective section. Nevertheless, we are encouraged by the hydrocarbon indications which provide emerging evidence for a working petroleum system in the previously undrilled South Omo Basin."

He added: "The results from the first flow test at Ngamia are also very encouraging and prove the first potentially commercial flow from the Lower Lokhone reservoir section. The remaining tests in the Auwerwer reservoir units will give us a fuller indication of Ngamia's production potential."

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