Tullow Makes New Discovery in Uganda


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Tullow reported that the Nzizi-3 well in Uganda Block 2 has appraised the Nzizi gas field and that the Noix de Coco-1 well in Gabon has encountered wet gas but in poor quality reservoir sandstones.

Nzizi-3 appraisal well results

The Nzizi-3 appraisal well was drilled 1.2 kilometers up-dip and to the east of the Nzizi-2 well in the Kaiso-Tonya region of Uganda Block 2. The well was drilled to a total depth of 974 meters and results of logging and sampling confirmed a total of 9 meters of gas pay, and 16 meters of oil pay. As expected, the gas pay includes a 4 meter zone in communication with the Nzizi-2 well. The oil pay includes a new discovery in the basal sands where 11 meters of net pay was encountered without an oil-water contact. The oil discovery will be the subject of further evaluation. Reservoir quality in each of these sandstone intervals is excellent.

The successful outcome of this well proves its viability as a future gas producer for the integrated power project scheduled for first production in late 2011. The Nzizi-3 well will now be suspended and the rig will move to the Waraga-1 discovery well to prepare it for future testing.

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%).

Noix de Coco-1 well result

Noix de Coco-1, located in the Azobe Permit offshore Gabon some 45 km northeast of Port Gentil, has encountered wet gas within the Cretaceous interval. Sandstones within the main objective were however of poor quality at this location and the well will be plugged and abandoned.

The well, drilled to a total depth of 2,640 metres, was the final commitment well in the current exploration period in the Azobe Permit. The results will be followed up with detailed technical work prior to deciding on the forward work program for the license. Tullow operates and has 60% interest in the Azobe Permit partnering with MPDC Gabon (40%).

Commenting today, Angus McCoss, Exploration Director, said, "The Nzizi-3 appraisal well takes us a significant step towards first gas production in Uganda by the end of 2011. We continue to work closely with the Government of Uganda on plans for accelerating our exploration and appraisal activities in the region and look forward to commencing a multi-well program with a second rig in Block 1 next month. A third rig is actively being sought for drilling later in 2010.

"Although Noix de Coco-1 notably encountered wet gas, the poor reservoir at this location rules out commercial development. The results of this well will be worked into the regional framework and forward plans will be made to further high-grade this otherwise prospective Northern Gabonese Basin."

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