Tullow Strikes Black Gold in Uganda's Block 2

Tullow Oil plc

Tullow announced that the Kigogole-3 exploration well, which is located in the Butiaba region of Uganda Block 2, has encountered over 20 meters of net oil pay in two separate zones.

Located approximately one kilometre from the crest of the structure, the well was drilled to a total depth of 575 meters and has been successfully logged and sampled. Excellent Kasamene-type reservoir sands were encountered in the lower zone with over 15 meters of net oil pay.

In a separate 5 meter total net reservoir section above the 15 meter main reservoir interval, thin-bedded oil bearing sands were also encountered.

Kigogole-3 is the eighth successful test of the Victoria Nile Delta play fairway within the Lake Albert Rift Basin. The well is located southwest of the Kigogole-1 oil discovery made in 2008, which was recently production tested. This latest result further extends the play and de-risks several adjacent prospects located in Blocks 1 and 2, which are scheduled for drilling later in the year.

The well is now being suspended as a future oil producer and on completion of operations the rig will move to the Wahrindi prospect, 13 kilometers to the southwest, close to the shore of Lake Albert. This well is expected to commence later this month and to drill to a depth of approximately 1,300 meters.

Commenting today, Angus McCoss, Exploration Director, said, "We are very pleased to have made another discovery in the Butiaba region of Block 2 which reaffirms the exceptional quality of the prospects within the Victoria Nile Delta play. We are steadily drilling our prospect inventory in this region and this continued success is enabling us to make significant progress on new leads and prospects. The ongoing campaign will help us define the ultimate limits of this very prolific petroleum system."