Etom-2 Well in Turkana raises stakes for oil production by Tullow

The discovery of 102 m of net oil in Etom-2 Well in South Lokichar Basin, Turkana County has raised stakes for oil production soon by Tullow. In December, Tullow announced the successful in high quality reservoir sands in an untested fault block identified on recent 3D seismic.

Tullow said

oil samples, sidewall cores, and wireline logging all indicate the presence of high API oil in the best quality reservoir encountered in the South Lokichar basin.

In its latest trading and operational update, the company said this pleasing news should inform production in the near future.

The successful Etom-2 result and additional prospectivity indicated on the new 3D seismic data around the greater Etom area and northern part of the South Lokichar Basin, highlights there is significant remaining exploration potential. Plans for further exploration drilling will be evaluated during the first half of 2016.

Government of Kenya has been keen on seeing the oil being produced as soon as mid this year but seems Tullow are being cautious on how soon this should be. The President tasked the ministry of energy to provide him with a report of how the oil can be transported from Lokichar by trucks to Kitale, from where it would be taken to Mombasa in specialized rail wagons for storage.

Tullow in its statement added that good progress continues to be made on the development planning in Kenya. Completion of the appraisal drilling campaign in 2015, including the successful Amosing and Ngamia Extended Well Tests, underpins a 2C resource base of 600 mmbo.

The Etom-2 result and surrounding prospectivity support an upside potential of 1 billion barrels of oil in the South Lokichar Basin. The draft Field Development Plan was submitted to the Government of Kenya in December and will inform discussions as we progress towards potential FID of both the Kenya and Uganda upstream development projects in 2017.

The company expects to do further drilling in other parts of the country.

The Cheptuket-1 exploration well in Block 12A spudded on 28 December. The well will test a basin bounding structural closure in the undrilled Kerio Valley Basin, in a similar structural setting to the successful Ngamia and Amosing discoveries in the South Lokichar Basin. Cheptuket-1 will likely complete drilling in February after which the PR Marriott Rig-46 will demobilise, marking the end of the current drilling campaign.



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