|1H 2014 Exploration and appraisal wells
||1H 2014 Success rate
This East African Rift Basin acreage in Kenya and Ethiopia shares many geological attributes with Tullow's Lake Albert Rift Basin position in Uganda. The acreage, which is located 500 km to the east of Lake Albert has good evidence of a live oil system. The Loperot-1 well drilled in 1992 recovered 29 degree API waxy crude from Miocene sandstones.
The first well in the basin, Ngamia-1, in Block 10BB, commenced drilling in January 2012 and discovered over 200 metres of net oil pay. This significant exploration result demonstrates that substantial oil generation has occurred in the South Lokichar Basin, which is one of 11 tertiary rift basins in Tullow's Kenya-Ethiopia acreage, each of which is similar in magnitude to the Lake Albert Rift Basin in Uganda. The second well, Twiga South-1, also made a major discovery in this frontier basin swiftly followed by further successes at Etuko-1 and Ekales-1. Tullow has made four further discoveries in the basin to date resulting in discovered PMean resources of over 600mmbo with the basin having a potential of in excess of 1 billion barrels of oil. Tullow now expects to drill some 40 wells in Kenya and Ethiopia over the coming 24 months, including eight new sub basin opening wells in the next 18 months.
A Full Tensor Gradiometry (FTG) Gravity Survey has been completed across most of the Kenya-Ethiopia licence blocks, an area of around 100,000 sq km. Over 100 leads and prospects have been identified in the 10+ basins. Additional 2D and 3D seismic data will be acquired to assist with the accelerated exploration and apprasial campaigns.
Tullow is currently operating three rigs, the PR Marriott 46, Weatherford 804 and Sakson PR5 rigs and a workover unit, the SMP-5.
Given the significant volumes discovered and the extensive exploration, appraisal and seismic programme planned to fully assess the upside potential of the South Lokichar Basin, Tullow and its partner have agreed with the Government of Kenya to commence development studies. The governments of Kenya, Uganda and Rwanda have signed a Memorandum of Understanding (MoU) and formed a Steering Committee to progress a regional crude oil export pipeline from Uganda through Kenya. The Kenya upstream partners have also signed a cooperation agreement with the Uganda upstream partners in support of the same objective. In addition, the partnership is involved in a comprehensive pre-FEED study for the export pipeline. The current ambition of the Government of Kenya and the joint venture partnership is to reach project sanction for development, including an export pipeline, in 2015/2016. If further exploration success opens additional basins there will be scope for the development to be expanded.
In offshore Kenya Block L8, the Mbawa-1 exploration well result was announced in September 2012 after encountering approximately 52 metres of net gas pay in the shallower primary target. Tullow had a 15% interest in the licence, targeting a separate Transform Margin Play, but the licence was relinquished in January 2014.
18 month Exploration & Appraisal Programme