Tullow: Operational Update and Interim Management Statement


Additional light rig starting in September, Etuko-spud within the next two weeks, now in excess of 120 leads & prospects...

Cheers

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Kenya & Ethiopia
Our high impact exploration campaign continues across Kenya and Ethiopia, with significant ongoing seismic operations, three active rigs and a further rig contracted to start activities in September 2013. In the remainder of 2013 we plan to acquire 2D and 3D seismic, drill a further seven wells and perform significant testing operations.

In Kenya, the Paipai-1 well was drilled in March 2013 and encountered light hydrocarbon shows whilst drilling and has been suspended pending agreement on future evaluation options. The testing of the Twiga South-1 discovery was completed in February 2013; a constrained combined rate of 2,812 bopd was achieved and has the potential to be increased to an unconstrained rate of over 5,000 bopd. Testing at the Ngamia-1 discovery is still in progress and the first test, from a zone previously considered to be non-productive and not included in previous estimates of net pay, flowed at a cumulative rate of 281 bopd. A further five tests are planned over the next month and are expected to lead to an increase in the previous total net pay of 100 metres. The test results to date on Twiga South and Ngamia are extremely encouraging for the Lockichar Basin and are important steps towards understanding the commerciality of these discoveries and the overall potential of the basin.

The next exploration well is Etuko-1, which is expected to spud within the next two weeks. This well is testing the first prospect in the Basin Flank play, and is more centrally located in the basin compared to Ngamia and Twiga South which were drilled along the basin bounding fault. A lighter, more mobile rig has been contracted to start work in September 2013 which will primarily be used to increase drilling efficiency by conducting testing operations and drilling shallow prospects and evaluation wells.

The first exploration well in Ethiopia, Sabisa-1 has been drilled to a total depth of 1,810 metres, recording hydrocarbon indications in sands beneath a thick claystone top seal. Due to hole instability issues, a sidetrack will be drilled to enable us to log and sample the zones of interest, with a result expected in late May 2013.

Seismic activity has included an extensive survey in Block 10BB/North West Block 12A in Kenya and 1,174 km 2D seismic has been acquired over the Chew Bahir basin in the South Omo block in Ethiopia. Both surveys have identified numerous attractive leads and prospects, some with amplitude anomalies characteristic of hydrocarbons, raising the total prospect and lead count in the acreage to over 120.

http://www.nation.co.ke/business/news/Kenya-ready-to-produce-oil-now/-/1006/1846570/-/13ojlfu/-/index.html

Ok ladies and gentlemen, this thing is huge. There is a paragragh in this article where the guy is talking about the field requiring a partner to develop as they can't go it alone, even if they were one of the big boys.

Any speculators to estimate for us the focus BPD, could it hit 1,000,000?