Tullow Oil : Over 40 Meters Net Oil Bearing Reservoir Uganda Block 1

28th Jul 2010 07:18

LONDON (Dow Jones)--Tullow Oil PLC (TLW.LN) Wednesday announces that the Ngiri-2 appraisal well, located in the Butiaba region of Uganda Block 1, has encountered over 40 meters of net oil bearing reservoir in two zones within an overall 131 meter gross oil bearing interval. MAIN FACTS: -The well was drilled 1.7 km north of the Ngiri-1 discovery well (drilled on the Warthog prospect) to a total depth of 892 meters. -Successful logging and sampling operations have confirmed the presence of moveable oil in two zones. -The lower zone encountered an oil water contact while pressure data acquired within the upper zone indicates the possibility of a deeper contact than expected. -Reservoir quality is also excellent, akin to the Kasamene field in Block 2, where a production rate of 3,500 barrels of oil per day, or B/D, was achieved during testing in 2009. -The Ngiri-2 well was the first of a multi-well appraisal program planned to further evaluate the extent and recovery potential of the Ngiri field. -Further activities will take place in the fourth quarter of 2010 with the drilling of down-dip appraisal wells Ngiri-3 and Ngiri-4 designed to establish oil water contacts and reservoir distribution. -The well has been suspended and the IRR-600 rig is moving to the Mpyo-1 location where material wildcat drilling operations will commence. -Tullow operates its 100% interests in three licenses, Blocks 1, 2 and 3A, in the Lake Albert Rift Basin in Uganda. -Shares closed Tuesday at 1273.0 pence. By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; [email protected] (END) Dow Jones Newswires July 28, 2010 02:18 ET (06:18 GMT)