South & East Africa
Tullow then drilled the Gunya-1 well in July 2011, which made a discovery in an undrilled fault block downdip of the Mpyo field. Appraisal drilling on the Jobi-East discovery commenced with Jobi-East-5 in August 2011 and Jobi-East-2 in September 2011. Jobi-East-5 provided valuable data for regional reservoir mapping but was drilled just outside the closure of the field. Jobi-East-2 successfully extended the field five kilometres north. A significant inventory of prospects has also been identified in EA-1 in a play that extends to the west of the river Nile. The Omuka well will test this new play and will spud in the fourth quarter of 2012. A large number of appraisal wells and well tests are also planned in the block in 2012.
In EA-2, three successful appraisal wells, Nsoga-2, Kigogole-6 and Ngege-2, were drilled and an extensive 3D seismic campaign covering the Kasamene, Ngiri, Nsoga and Kigogole discoveries was completed. The data recovered is of high quality and is currently being interpreted. In October 2011, Tullow received confirmation of the continuation of the appraisal periods for Kasamene, Wahrindi, Kigogole, Nsoga, Ngege and Ngara for an additional year and well testing will take place in the first half of 2012. Drilling activity in 2012 will focus on further appraisal of the Ngege, Nsoga and Waraga discoveries. The Kanywataba prospect at the southern end of the basin is expected to be drilled in the third quarter of 2012.
Kenya and Ethiopia
Tullow farmed into blocks 10A, 10BA, 10BB, 12A & 13T in Kenya and the South Omo block in Ethiopia in 2011 and Block 12B in Kenya in February 2012. Tullow operates and has a 50% interest in all seven blocks. The acreage covers the Turkana Rift Basin, which has similar characteristics to the Lake Albert Rift Basin, and includes a south-east extension of the geologically older Sudan rift basin trend.
A Full Tensor Gradiometry (FTG) Gravity Survey acquired across most of the Kenya-Ethiopia licence blocks, covering an area of around 100,000 sq km, has been completed and processed. The data quality is excellent and there are strong similarities with the successful FTG survey acquired in Uganda in 2009. A 1,000 km 2D seismic programme in the South Omo Block in Ethiopia completed in early 2012. In Kenya, a 500 km 2D seismic programme was started in Block 13T in January 2012. This will be followed by a 1,350 km 2D survey in Block 10BA.
The Ngamia-1 well in Block 10BB, which has an anticipated depth of 2,700 metres, spudded on 25 January 2012. Once this well is completed, the rig will drill the Paipai-1 well in Block 10A. It is also planned to drill a well in the South Omo Block in Ethiopia, in the third quarter of 2012.
In 2011, Tullow completed a farm-in to Block L8, offshore Kenya, and holds a 15% equity position with a 5% additional equity option. The high-impact Mbawa-1 well will be drilled in the third quarter of 2012 where Tullow has identified a potential oil prone area in this gas rich province.
Tullow acquired an interest in the Kudu gas field through the acquisition of Energy Africa in 2004. Numerous initiatives have been pursued over the intervening years and the development of the field, as a gas-to-power project, is now making progress. A new Kudu Petroleum Agreement was signed in October 2011 and a 25-year Production Licence was issued by the Minister of Mines & Energy in November 2011. The Upstream Joint Operating Agreement, Project Development Agreement and Gas Sales Agreement Heads of Terms are being progressed and when concluded will allow the development to proceed to sanction. An investment decision is targeted for late 2012 which could mean the delivery of gas and power generation by the end of 2015.
Following the completion of a field programme in the first half of 2011, over 450 km of good quality 2D seismic data was then acquired in Blocks 3109 and 3111 which is still being processed. The rift basin trend covered by the seismic data has already proven successful for light oil in Block 3133 directly to the south. Based on encouraging data, Tullow’s intention is to acquire further seismic and use these data to pick potential wildcat well locations. A farm-out process is also under way, with the intention of reducing Tullow’s equity to 50%.
Until November 2011, Tullow held a 50% interest in the Lindi and Mtwara Blocks. In November 2011, Tullow farmed down half its interest to its partners, Ndovu Resources Ltd (Aminex) and Solo Oil. The Ntorya-1 well spudded on 22 December 2011 in the Mtwara Block and Tullow elected not to participate in the final section of the well in March 2012.