Tullow Says Kudu-8 Results Disappointing

Kudu-8 appraisal well
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Tullow Oil says that the Kudu-8 appraisal well has been drilled to a total depth of 4,355m and, following the results of logging operations, will not now be flow tested. The well was designed to test the potential for additional reserves within the Greater Kudu field area, thereby broadening the range of development and commercialization opportunities available.

The well encountered the targeted gas bearing reservoir sands at 4,299m, consistent with the results from the nearby Kudu-5 well drilled in 1998. These sands were thicker and of a better quality than those in Kudu-5; however, the reservoir permeability was lower at this location. The results of the logging program showed that any production from this well would not exceed the 19mmscfd rate recorded at Kudu-5. The joint venture has therefore decided not to flow test the well, which has now been plugged and abandoned. The Pride South Seas rig contract will now be terminated following this well and the results fully integrated into Tullow’s geological model for the area in advance of any decisions on further drilling.

Commenting today, Aidan Heavey, Chief Executive of Tullow said:

"The result of the Kudu-8 well is a disappointment for Tullow. Despite encountering improved reservoir development, it has not proved possible to demonstrate commercial flow rates at this location and significant technical and geological work will now be undertaken to determine the best future program for the area. Tullow does not expect this result to impact on the progress of the Kudu gas-to-power project and remains committed to the joint venture and will continue the process of developing this important Namibian natural resource."

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