Exploration drilling update - Uganda

The well was drilled to a total depth of 700 metres and encountered over 96 metres of net reservoir overlain by a thick sealing claystone. Although the well only encountered water bearing sands, due to apparent trap failure at this location, it has opened up a new reservoir fairway between the Victoria Nile Delta and Escarpment plays. The information gained from the well will now be used to establish additional leads in this region.

Awaka-1 has been plugged and abandoned and the OGEC 750 rig will now move to drill the Kigogole-3 prospect in the Victoria Nile Delta Play in a fault block adjacent to the Kigogole-1 discovery. Drilling operations are scheduled to commence in early June.

Elsewhere in Block 2, the Ngassa-2 exploration well has been drilled to 2,230 metres and is expected to penetrate the reservoir sections encountered in the Kasamene and Kingfisher wells within the next month.

Commenting today, Angus McCoss, Exploration Director, said:

"Although we are disappointed to encounter our first failed trap in a highly successful 23-well campaign, the Awaka-1 well has located a thick new sand fairway which may have significant follow-on potential. In the short to medium term our exploration drilling campaign will now focus on the core of the prolific Victoria Nile Delta play and on penetrating the target reservoirs in the large Ngassa prospect."