Tullow Unlocks Additional Pay in Uganda Block 2


Uganda Blocks
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Tullow Oil announced that the Kasamene-2 appraisal well, which is located in the Butiaba region of Uganda Block 2, has encountered 39 meters of net oil pay and 8 meters of net gas pay within a 132 meter gross interval.

The well is located near the crest of the field 1 km north-east of the Kasamene-1 discovery well and was drilled to a total depth of 866 meters. Results of wireline logging, pressure surveys and fluid sampling have confirmed the presence of oil and gas. Reservoir quality is excellent and the net pay thickness is the largest encountered in the Butiaba area to date.

Well and seismic data indicates the reservoir sands intersected in the Kasamene-2 well are in pressure communication with those at Kasamene-1, which flowed at over 3,500 bopd in March 2009. Pressure data has confirmed a single continuous oil column in excess of 70 meters and a gas column of over 20 meters. The well will now be suspended as a future producer and this will form Phase 1 of the Albertine Rift Development.

Kasamene-2 is the first of two Kasamene appraisal wells being drilled to support the proposed development of this field. A further four appraisal wells will also be drilled in 2010 to delineate the other significant discoveries in this area.

Tullow has interests in three licenses in the Lake Albert Rift Basin in Uganda. Tullow operates Block 2 with a 100% interest and has a 50% interest in Blocks 1 and 3A which are operated by Heritage Oil (50%).

Paul McDade, Chief Operating Officer, said, "Encountering the largest net pay thickness in Butiaba to date is an outstanding result, confirming the lateral quality and extent of the Victoria Nile Delta reservoirs and enabling fast-tracked development of the Kasamene field. We continue to work closely with the Government of Uganda on plans for development and look forward to achieving early first oil from the basin."

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