Uchenna Izundu
International Editor
LONDON, Oct. 11 -- The Ugandan government, Hardman Resources Ltd., and Tullow Oil PLC have agreed under a new memorandum of understanding to progress the appraisal and development activities for Block 2 on the Ugandan side of the Albertine Graben.
The companies want to realize the full potential of existing discoveries and "provide time for the continuing active exploration of the remainder of the block."
The partners plan to spud the Nzizi-1 well, an updip appraisal well to the southwest of the Mputa oil discovery, by early November.
They will also carry out further 3D and 2D seismic surveys to better define the volumes of the existing discoveries, develop infill locations, and explore the northern area of the block to identify drilling prospects in 2007-08. The partners are currently evaluating the most effective way to drill offshore prospects in Lake by the end of 2007.
The partners and the government are keen to start early production with the discoveries already made. If their investigations prove to be technically and commercially feasible, the petroleum development could use the oil discovered to fuel a potential 50-Mw local electric power station and supply a small refinery. This would be significant for Uganda, which has no oil production.
Simon Potter, Hardman chief executive officer and managing director, said, "Confidence in the existing resource base and the market potential allows us to consider an early production scheme.
Hardman has a 50% interest in Block 2 via its subsidiary Hardman Petroleum Africa Pty. Ltd., which is operator. Tullow holds the remaining 50%.
Contact Uchenna Izundu at [email protected].
