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Ireland's Tullow finds oil in Kenya

Wednesday, October 31 10:47:43

Shares in Ireland's Tullow Oil rose by 2.5pc in London this morning after it confirmed that it struck oil at its Kenyan licence.

Following media speculation in Kenya, Tullow announced that the Twiga South-1 exploration well in onshore Kenya Block 13T has successfully encountered oil.

It said that drilling is on-going and, as previously stated by its partners Africa Oil Corp on October 26 2012, an announcement of the drilling result is expected in early to mid-November after target depth has been achieved and necessary sampling and analysis has been completed.

The Twiga South-1 structure is the second prospect to be tested as part of a multi-well drilling campaign in Kenya and Ethiopia and is the first discovery in block 13T following the Ngamia-1 discovery earlier this year in Block 10BB.

Tullow has a 50pc operated interest in the Twiga South-1 well with Africa Oil holding the remaining 50pc interest.

Analysts welcomed the announcement.

"A discovery at Twiga would serve to de-risk onshore Kenya further, and prove up the 'string of pearls' concept which the operator is targeting in the Lokichar basin," said Bank of America Merrill Lynch.