Tullow abandons first well on Kerio Basin in Kenya
Hydrocarbons found at Tullow Oil's first well in Kenya's Kerio Basin "provide encouragement" even though it had to be plugged and abandoned, the exploration company said on Thursday.
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The Kodos-1 wildcat exploration well in Block 10BB, the first to be drilled in Kerio, north-east of the successful South Lokichar Basin, found hydrocarbons which "indicates the presence of an active petroleum system".
However, given that reservoirs were of mixed quality, Tullow said the well was abandoned. The rig is to move to drill a second well 25km north in a separate sub-basin.
"Following up on the encouraging hydrocarbon shows at Kodos-1, further drilling in the greater Kerio Basin can be expected during 2015," the group said.
Exploration director Angus McCoss said Kerio's potential "remains highly prospective".
Tullow also reported mixed results from the nearby South Lokichar Basin, where another exploration well, the Ekosowan-1, was plugged and abadoned.
However, the Twiga-2A well test achieved production rates of between 150 and 3,270 barrels per day - the highest oil production rate seen to date in Kenya.
Positive results were also reported from the Ngamie-4 appraisal well.
The stock fell sharply on Thursday morning, down 3.2% at 510.5p in early deals.