The scramble for acreage in East Africa continues apace, with Tullow Oil taking operatorship of five blocks in Kenya and Ethiopia, previously held by Africa Oil Corp. cover 37,452 sq miles (97,000 sq km). The blocks also are adjacent to the Centric Energy block in Kenya into which Tullow farmed last month.
Tullow believes this East African Rift Basin acreage shares several geological attributes with its Lake Albert Rift Basin position in Uganda, but is 10 times larger.
The deal covers a 50% interest in blocks 10BB, 10A, 12A, and 13T in Kenya, and the South Omo block in Ethiopia. Tullow has agreed to pay 50% of past costs and will carry Africa Oil for US $23.75 million of net future costs.
The acreage, which is 311 miles (500 km) east of Lake Albert, has good evidence of a live oil system. The Loperot-1 well drilled in 1992 recovered waxy crude from Miocene sandstones. Seismic programs are planned for the acreage in 2010 and 2011, and the first wells are expected to be drilled next year.
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