Tullow evaluating options after suspending Kenyan well

1st Mar 2013 07:43

FTSE 100-listed oil and gas producer Tullow has suspended its Paipai-1 exploration well in Kenya after struggling to bring oil to the surface, the company said on Friday morning.The well, located in the Marsabit County of Kenya Block 10A, was drilled to evaluated a large structural closure of Cretaceous age in the Anze Basin. However, the light hydrocarbons encountered in the well were not able to be recovered to the surface due to a thick layer of rock which formed an "effective regional top seal".The firm said it has temporarily suspended the well and is considering its options.Tullow owns a 50% operated interest in the well, with Africa Oil holding 30% and Afren holding the remaining 20%."As we were unable to recover the hydrocarbons encountered whilst drilling, the well needs additional assessment. We will now carefully evaluate all the data and review the available technical options, which include possible flow testing and reservoir stimulation," said Tullow's Exploration Director Angus McCoss. "From a frontier exploration perspective, we can already conclude that this part of the Anza Basin has the makings of a viable Cretaceous hydrocarbon play. Consequently, we will also be reviewing the follow-up Cretaceous prospects," he said.Meanwhile, McCoss added that Tullow's exploration activities are" accelerating" in the core oil campaign in the Tertiary rift basins of Kenya and Ethiopia.