TULLOW OIL - worth another look?

"Mobilisation and rig up is complete at Block 2 - Mputa-1 Wildcat, Uganda, and the rig is now undergoing inspection and testing prior to rig acceptance and spudding of the well.

Mputa-1 will target a structural prospect with potential multiple objectives. The prospect was defined by the 2005 onshore seismic survey and oil seeps have been identified in the immediate area.

The planned total depth is approximately 1,100 metres. The well location is 220 kilometres north-west of the capital Kampala and onshore 8 kilometres from Lake Albert.

The location is 60 kilometres south-west of the Butiaba Waki-1 well (drilled in 1938) and 87 kilometres north-east of the Turaco exploration wells drilled by Heritage in 2002-2004."



Re Turaco-3 Heritage Oil said in March this year:

"In Uganda, Turaco-3 well was drilled to a total depth of 2,850 metres, logged and tested in 2004. Two potential hydrocarbon-bearing zones containing a stacked sequence of sands and shales over a gross pay of approximately 350 metres were identified. Net pay of 84 metres with an average porosity of 24% was calculated from logs. Three through-casing Drill Stem Tests were run on three separate sand units, which resulted in flow rates of between 8 to 12 million standard cubic feet of gas per day (mmcf/d), achieved at variable choke settings between 20/64 and 28/64 inches and wellhead flowing pressures of 1,200 to 1,600 psi. The flow rates of the well were constrained by the surface test equipment and, under production conditions, were extrapolated to be approximately 60 mmcf/d. However, the gas contained very high concentrations of carbon dioxide and as a consequence the well is not believed to be commercially viable.
Mr. Gulbenkian stated, “the Turaco-3 well has all the hallmarks of a new hydrocarbon system in the license area: a world-class reservoir, an effective seal and mature hydrocarbon source rocks. In spite of the presence of carbon dioxide,the basin remains highly prospective for oil. The 2005 work program will focus on substantial prospects mapped on Lake Albert, which could contain oil resources of several billions of barrels.”