Tullow Triumphs with Gas Discovery in Uganda Block 2

Uganda Blocks
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Tullow Oil Plc has provided the following update on Exploration and appraisal drilling obligations in Uganda.

Kasamene-1 Exploration well, Block 2

The Kasamene-1 exploration well, drilled in the Butiaba region of Uganda Block 2, has encountered over 31 meters of net oil pay and at least 6 meters of net gas pay.

The well was drilled some 1.5km from the crest of the structure to a total depth of 957 meters and has been successfully logged. Downhole pressure testing and sampling has confirmed the presence of dry gas and moveable 30-33 degree API oil. Reservoir quality for both zones is excellent. The most likely gas column is over 35 meters and the most likely oil column is over 75 meters. Further potential exists up-dip and an appraisal well will be required to test the vertical extent of the oil legs and gas cap. The well is currently being sidetracked and core will be taken throughout the reservoir section for analysis.

Kasamene-1 was drilled 15km to the north-west of the Ngege-1 discovery and is the second successful test of the Victoria Nile delta play fairway within the Lake Albert Rift Basin. The well results have confirmed the presence of excellent quality thick reservoir and seal units within the centre of the basin, and de-risks several adjacent prospects in Blocks 1 and 2 that will be drilled as part of the current 9 well Butiaba drilling campaign.
On completion of operations at Kasamene-1, the rig will move 10 kilometers to the East and drill the Kigogole-1 prospect starting in mid August.

Kingfisher-2 well, Block 3A

This deviated appraisal well has been drilled to a total depth of 3,906 meters, (3,197 meters true vertical depth). Three zones will be production tested, which, based on a preliminary evaluation of wireline log data, have an estimated net thickness of 37 meters over a gross interval of approximately 100 meters. These three zones appear equivalent to the Upper Miocene discoveries in the Kingfisher-1 well.

In the targeted deeper section the well penetrated the anticipated basal sands comprising approximately 30 meters of reservoir overlain by a good potential shale top-seal. Although no hydrocarbons were present in the basal sands at this location, it is considered that these could still be an important reservoir target for other prospects within Block 3A, that will be evaluated as part of the planned Lake Albert offshore drilling program in 2009.

Testing of the Kingfisher well is expected to be complete before the end of this month.

Aidan Heavey, Chief Executive of Tullow commented, "Kasamene-1 is the most important result to date in Tullow's Butiaba drilling campaign. In addition to maintaining our 100% exploration success record in Uganda, this result indicates the potential for further significant discoveries from the Victoria Nile delta play, and is likely to represent an important element of longer term commerciality planning. While the deep exploration objective in the Kingfisher-2 well at this location did not find additional hydrocarbons, this well has proved up a significant discovery. These results increase our confidence of quickly achieving the reserve volumes required for a major development."


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