Delta4
Senior Member
- May 24, 2012
- 107
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Kenya tipped as battle for East African assets heats up - Proactiveinvestors (NA)
''Kenya, to the north of Tanzania, has been hotly tipped to succeed its East African neighbours as the next big oil and gas exploration target. The country has the largest economy in East Africa and generates much of its revenue from tourism. But the recent oil and gas discoveries have led many, including Kenyas president, to wax lyrical about the emerging potential of the energy sector in the country.
Tullow Oil (LON:TLW), one of the industrys most successful explorers, has already made substantial headway in the country as it looks to steal a march on its rivals. But it is finding it hard to keep its finds under wraps, such is the companys success in the area. The FTSE 100 group first struck oil back in March, while further oil was discovered in early May at the half-owned Ngamia-1 well in the Lokichar basin in Turkana County.
The net pay found so far in the onshore well is more than double what Tullow has seen in any of its East African exploration wells to date. The latest find showed oil and gas over a gross interval of 140 metres from a depth of 1,800 metres to 1,940 metres, similar to the reservoirs found at shallower levels.
City brokers are understandably bullish about the discovery, with Morgan Stanley suggesting that Tullow has barely scratched the surface in Kenya. The broker is certainly not underestimating the areas potential and is urging investors to invest in Kenya now ahead of what is likely to be a string of success, unlocking a new East African oil province.
Analysts Killik & Co, meanwhile, reckon Tullows resources in Kenya could be ten times the size of those in Uganda.
Tullow has the support of Kenyan president, Mwai Kibaki, who hailed the discovery as a major breakthrough.
He added that it marks the beginning of a long journey to make our country an oil producer, which typically takes in excess of three years.
And the country is looking to attract even more investment in the sector, after officials announced Nairobi would include a tax break for firms exploring for oil and gas in a new law.
Drilling at Ngamia will continue to a depth of 2,700 metres, followed by logging and sampling, which is expected to take around three weeks. Investors and brokers alike will be awaiting the outcome with bated breath''.
''Kenya, to the north of Tanzania, has been hotly tipped to succeed its East African neighbours as the next big oil and gas exploration target. The country has the largest economy in East Africa and generates much of its revenue from tourism. But the recent oil and gas discoveries have led many, including Kenyas president, to wax lyrical about the emerging potential of the energy sector in the country.
Tullow Oil (LON:TLW), one of the industrys most successful explorers, has already made substantial headway in the country as it looks to steal a march on its rivals. But it is finding it hard to keep its finds under wraps, such is the companys success in the area. The FTSE 100 group first struck oil back in March, while further oil was discovered in early May at the half-owned Ngamia-1 well in the Lokichar basin in Turkana County.
The net pay found so far in the onshore well is more than double what Tullow has seen in any of its East African exploration wells to date. The latest find showed oil and gas over a gross interval of 140 metres from a depth of 1,800 metres to 1,940 metres, similar to the reservoirs found at shallower levels.
City brokers are understandably bullish about the discovery, with Morgan Stanley suggesting that Tullow has barely scratched the surface in Kenya. The broker is certainly not underestimating the areas potential and is urging investors to invest in Kenya now ahead of what is likely to be a string of success, unlocking a new East African oil province.
Analysts Killik & Co, meanwhile, reckon Tullows resources in Kenya could be ten times the size of those in Uganda.
Tullow has the support of Kenyan president, Mwai Kibaki, who hailed the discovery as a major breakthrough.
He added that it marks the beginning of a long journey to make our country an oil producer, which typically takes in excess of three years.
And the country is looking to attract even more investment in the sector, after officials announced Nairobi would include a tax break for firms exploring for oil and gas in a new law.
Drilling at Ngamia will continue to a depth of 2,700 metres, followed by logging and sampling, which is expected to take around three weeks. Investors and brokers alike will be awaiting the outcome with bated breath''.
