Sub-Saharan Africa-focused oil explorer Tower Resources announced Thursday that its Mvule-1 exploration well on Uganda License EA5 has come up dry after the well reached its total depth of 1,935 feet (590 meters).
No significant hydrocarbon shows were encountered over the zone of interest and electric wireline logging and fluid sampling confirmed that the well was water bearing. The well is now being plugged and abandoned, said Tower.
The firm's management commented that although the generation of oil in the license has been established, the largest structures have now been drilled and no commercial reserves have been found.
Mvule-1 was the final well commitment on EA5 and the final exploration period ends on March 26, 2012, added the firm. Tower's subsidiary, Neptune Petroleum (Uganda), will now complete its site restoration commitments in line with government regulations.
Oil sector analysts at London-based Westhouse Securities said that they expect the license to be relinquished, which will leave Tower with no acreage in the Ugandan region. The firm also has interests in Namibia and in the Western Sahara.
Tower CEO Peter Kingston said that while he believes that the largest structures have now been tested, he also believes that the generation of oil has been established and "there remains potential for oil discoveries in West Nile sometime in the future" and that the firm's management team will continue to review future opportunities in the region.
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