Tullow finds more oil in Uganda; confirms earlier findings

Tullow Oil PLC said its Kasamene-3 and Kasamene-3A wells in the Butiaba region of Uganda Block 2 have successfully delineated the extent of oil in the Kasamene field, and it discovered oil in the Wahrindi North fault block.

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Apr. 13 -- Tullow Oil PLC said its Kasamene-3 and Kasamene-3A wells in the Butiaba region of Uganda Block 2 have successfully delineated the extent of oil in the Kasamene field, and it discovered oil in the Wahrindi North fault block.

"These Kasamene and Wahrindi North exploratory appraisal results have successfully delineated the upside potential in this immediate area,” said Angus McCoss, Tullow’s exploration director. “This takes us a significant step towards first oil in Uganda, which is expected from the Kasamene field in 2011,” he said.

Tullow said the Kasamene-3 well was drilled down-dip and 2.2 km to the southwest of the Kasamene-1 discovery well. It said the “deviated well” was drilled to a total depth of 1,109 m and results of logging confirmed 10 m of oil pay within a 35 m thick reservoir section of the Kasamene field.

“Pressure data confirmed this pay to be in communication with the up-dip Kasamene-1 well, successfully extending the column height of these reservoirs to over 100 m,” Tullow said.

The UK-listed firm said “high-quality” reservoirs 25 m thick were encountered on prognosis below the oil-water contact. “This successful outcome proves the viability of this location as a future water injection point to support up-dip oil production,” it said.

Meanwhile, Tullow said a second well to explore the Wahrindi North fault block was drilled utilizing the top-hole section of Kasamene-3. This well, called Kasamene-3A, was drilled to a total depth of 988 m into a separate fault compartment 300 m to the southwest and encountered more than 15 m of oil pay.

Tullow said the rig will now move to the Kaiso-Tonya area to drill the Nzizi-3 appraisal well in support of the accelerated Nzizi gas development project.

Tullow has interests in three licenses in the Lake Albert Rift Basin in Uganda. It operates Block 2 with a 100% interest and has a 50% interest in Blocks 1 and 3A, which are operated by Heritage Oil with a 50% stake in each.

Tullow has applied for approval by the Ugandan government to purchase Heritage’s stakes in the two blocks and to make farmout arrangements regarding them with Total SA and China National Offshore Oil Co.

According to analyst BMI, “The entry of major industry players into its projects will allow Tullow to fast-track the development of its blocks and the necessary related infrastructure.”

However, the Ugandan government has not been in a hurry to make the approvals, saying in March it would defer its decision for a month.

"Our expectation is that by April we will have finished our evaluation and that the government will give the go-ahead for the transactions to proceed," said Kabagambe Kaliisa, the energy ministry's permanent secretary (OGJ, Mar. 22, 2010).

While awaiting that decision, McCoss said Tullow continues “to work closely with the government of Uganda on plans for accelerating our exploration and appraisal activities in the region and look forward to commencing a multiwell program with a second rig in Block 1 next month.”

Contact Eric Watkins at hippalus@yahoo.com.

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