Lower Lokhone oil discovery made at Ngamia-1 well in Kenya

The remaining five tests will be conducted in the Auwerwer (formerly Upper Lokhone) sandstones, which are the highest quality reservoirs in the Ngamia well. Results of these tests are expected to be announced by early June, according to a statement released by the Canadian oil and gas company.

Africa Oil has a 50 per cent working interest in the block along with Tullow Oil, which holds the other half of interest and operatorship.

Keith Hill, Africa Oil’s CEO, said, “We are pleased to be moving forward on a number of high-impact projects that will greatly affect the value of the company in the coming year. The confirmation of potentially commercially viable oil in the Lower Lokhone sands in the Ngamia well will add to the overall resource potential. We remain convinced that we have only just begun to unlock the potential of what may be one of the largest new oil basins to be opened in recent times.”

Meanwhile, the Sabisa-1 well in the South Omo Block in southern Ethiopia has been drilled to a preliminary total depth of 1,810m. Hydrocarbon indications in sands were recorded while drilling, but instability issues also required the drilling of a sidetrack to log and sample these zones of interest. This sidetrack result is expected late May 2013. The hydrocarbon provided emerging evidence for a working petroleum system in the South Omo Basin.

Africa Oil holds a 30 per cent working interest in the Ethiopian block, along with operator Tullow Oil owning 50 per cent and Marathon Oil Corporation with the remaining 20 per cent share.

Drilling preparations were also underway on the El Kuran prospect in Ethiopia. This well was being drilled on a large structure previously confirmed to contain light oil in Jurassic carbonates. The company holds a 30 per cent working interest along with New Age with 40 per cent and Afren holding 30 per cent.

Africa Oil also said that it was in final negotiations to secure a drilling rig for its upcoming Bahasi-1 exploration well in Block 9 in Kenya. The well is expected to spud in Q3 of 2013.

In this project, the company holds a 50 per cent working interest and operatorship, along with Marathon Oil Corporation owning the other half.