Africa Oil: Additional oil detected at Ngamia-1

Africa Oil (CVE:AOI, STO: AOI) said in an update this morning that Ngamia-1 wildcat well in Kenya Block 10BB has now reached depth of 2340 metres and is now suspended for flow testing. In addition to earlier announced of greater than 100 metres of net light oil pa in Upper Lokhone Sand section, an additional 43 metres of potential oil pay over a gross 150 metre interval based on an MDT sample. Target depth was not reached as the well encountered basin bounding fault. This is interpreted to have cut out some 100 metres of prospective reservoirs. The operator in the license is 50-50 partner Tullow Oil (LSE: TLW).

Oil was encountered in sands throughout a 1100 metre interval, including 300 metre section of Lokhone shale believed to be the primary source interval. A lot of leads and prospects have been identified in seven separate basins in Kenya and Ethiopia Tertiary rift basin acreage. In the company’s view, those located in South Lokichar Basin are now substantially de-risked due to being in close proximity of Ngamia-1. The drilling rig is moving to drill Twiga-1 well 30 kilometres northeast in Block 12T along the western basin bounding fault on trend with Ngamia. Two additional rigs are being sourced as well and seismic crews are on scene.