Tullow strikes again in Uganda

22nd Jan 2010 07:31

Tullow Oil has found more oil and gas in the Butiaba region of Uganda Block 2, this time at the Kasamene-2 appraisal well 1km north-east of the Kasamene-1 discovery.The well encountered 39 metres of net oil pay and 8 metres of net gas pay within a 132 metre gross interval. 'Reservoir quality is excellent and the net pay thickness is the largest encountered in the Butiaba area to date,' said the explorer.Well and seismic data indicates the reservoir sands intersected in the Kasamene-2 well are in pressure communication with those at Kasamene-1, which flowed at over 3,500 bopd last March.Kasamene-2 is the first of two Kasamene appraisal wells being drilled to support the proposed development of the field. Another four will also be drilled in 2010 to delineate the other significant discoveries in this area.Chief operating officer Paul McDade called it an 'outstanding result', which confirms the lateral quality and extent of the Victoria Nile Delta reservoirs and enabling fast-tracked development of the Kasamene field. 'We continue to work closely with the government of Uganda on plans for development and look forward to achieving early first oil from the basin,' he said.Tullow operates Block 2 with a 100% interest and has a 50% interest in Blocks 1 and 3A which are operated by Heritage Oil (50%).Earlier this week, the company exercised a pre-emption right to snap up the Ugandan oil fields half-owned by partner Heritage Oil for $1.5bn. Italian state oil company Eni had agreed in November to buy Heritage's 50% stake in Blocks 1 and 3A for $1.35bn in cash and a deferred consideration of $150m.