Tullow sees success with Nzizi-3, hopes to produce first natural gas in Uganda by 2011

Source: Tullow Oil

The Nzizi-3 appraisal well was drilled 1.2 kilometers up-dip and to the east of the Nzizi-2 well in the Kaiso-Tonya region of Uganda Block 2. The well was drilled to a total depth of 974 meters and results of logging and sampling confirmed a total of 9 meters of gas pay, and 16 meters of oil pay.

As expected, the gas pay includes a 4 meter zone in communication with the Nzizi-2 well. The oil pay includes a new discovery in the basal sands where 11 meters of net pay was encountered without an oil-water contact. The oil discovery will be the subject of further evaluation. Reservoir quality in each of these sandstone intervals is excellent.

The successful outcome of this well proves its viability as a future gas producer for the integrated power project scheduled for first production in late 2011. The Nzizi-3 well will now be suspended and the rig will move to the Waraga-1 discovery well to prepare it for future testing.

Tullow has interests in three licenses in the Lake Albert Rift Basin in Uganda. Tullow operates Block 2 with a 100% interest and has a 50% interest in Blocks 1 and 3A which are operated by Heritage Oil (50%).

"The Nzizi-3 appraisal well takes us a significant step towards first gas production in Uganda by the end of 2011,” said Angus McCoss, exploration director for Tullow. “We continue to work closely with the Government of Uganda on plans for accelerating our exploration and appraisal activities in the region and look forward to commencing a multi-well program with a second rig in Block 1 next month. A third rig is actively being sought for drilling later in 2010. "



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