200805131287 | More oil, gas found in Hoima district

More oil, gas found in Hoima district

TULLOW Oil, a company exploring for oil in western Uganda, said yesterday it had struck oil and natural gas deposits at Taitai-1 exploration well, located in Butiaba region, about 60km north of Hoima. The London-based company said in a statement on its website that exploration at Taitai-1 well encountered five metres of net gas pay and at least eight metres of net oil pay.

“Downhole pressure testing and sampling has confirmed the presence of moveable 30 degrees API oil and a potential oil column of up to 80 meters, in sands above the basement play,” the statement said.

Aidan Heavey, the chief executive of Tullow, said the latest discovery has proved the existence of a working petroleum system over 70km from the previous wells drilled in the Kaiso Tonya region.

The discovery reinforces the potential of the Lake Albert Rift Basin as a major emerging petroleum province, he added.

“We are encouraged by the Taitai result and look forward to the remainder of the campaign in the Butiaba area.”

The Taitai-1 well is the first of a nine-well exploration programme in the Butiaba area. After more confirmatory tests of this well, operations will be moved to another exploration well, Lanya-1, at the end of May, the company announced.

The Government says the discovery of various oil deposits in the Albertine region and successful exploitation will boost Uganda’s economic growth and solve the energy crisis.

Already, it has agreed on an early production scheme set to start next year to use a limited amount of oil to fuel a thermal power plant.

The discoveries are also expected to offset the enormous oil import bill of more than $160m annually.