Tanzanian licence ‘holding 12.5 million to 110.5 million barrels of oil’

oilwell tanzania-eric kounce wcThe Australian companies are also required to carry out in 2014 either another 2D seismic survey totalling 500km or to drill one well. (Image source: Eric Kounce/Wikimedia Commons)Swala Energy and Otto Energy have announced that an oil prospect in the Kilosa-Kilombero Licence is estimated to hold between 12.5mn and 110.5mn barrels of oil onshore Tanzania

The Kito Prospect was identified from the results of the recently-completed seismic survey carried out over a 20-kilometre section of the 80-kilometre long Kilombero Basin.

Independent petroleum advisory firm RISC Operations has identified two main potential reservoir horizons, namely Yellow and Blue, according to company sources.

Yellow has an eight per cent chance of discovery and best estimate P50 unrisked prospective resources of 29.2mn barrels of oil while Blue has a nine per cent chance of discovery and P50 unrisked prospective resources of 10.1mn barrels of oil, RISC Operations said.

Gregor McNab, chief executive of Otto Energy, said, “Otto Energy is highly encouraged by the initial results from analysis of the Kito Prospect, this is endorsement of our investment decision in 2012 and supports the company’s increased strategic focus on East Africa.”

“Kito is a material prospect, and based upon recent success in similar settings in the East African Rift System, we expect further material prospects to emerge as we undertake more exploration in 2014,” he added.

The Australian companies are also required to carry out in 2014 either another 2D seismic survey totalling 500km or to drill one well.

Swala Energy said that it is in the process of discussing with the Tanzanian Petroleum Development Corporation the possibility of focussing its 2014 activities over the Kito area with the aim of fast-tracking the prospect to the drilling phase.

Swala Energy has a 32.5 per cent indirect interest in Kilosa-Kilombero licence while Otto has a 50 per cent working interest.

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