Tullow Oil has seen its boosted after announcing two large new finds in Kenya – as it prepares to announce strong profits growth for the year.
The African-focused explorer estimates the new onshore finds, at Amosing 1 and Ewoi 1, will increased the company’s resources in the region to more than 600 million barrels of oil, with the potential for even more finds.
The discoveries make it seven in a row for the Irish-founded explorer, with the new discoveries significantly higher than previously expected by the firm.
The Amosing well yielded a net oil pay of between 160m and 200m, while the Ewoi well revealed between 20m and 80m of oil.
Tullow, which has a 50% operating stake in the oil basin with Africa Oil, said it was now in talks with Kenya’s government about how best to develop the project.
“The results to date are extremely positive for achieving a commercial development from the discoveries made in this basin,” said Tullow chief operating officer Paul McDade.
“We will now be working with the national and county governments with the aim of progressing both the upstream development and the associated export pipeline to project sanction in the period 2015/2016.
“There is clearly scope for the development to be expanded if there is further exploration success in other basins.”
The discovery represents a boost for Tullow ahead of the company publishing its full year results next month, with working production up to an average of 84,200 barrels of oil per day for 2013, compared to 79,200 the year before.
Gross profits are expected to be around $1.4billion (£852million) for the year, up from £822million the previous year, the company said.
“We made good progress across the business over the past year despite facing challenges within the oil and gas sector,” said chief executive Aidan Heavey.
“Our exploration successes in Kenya and Norway mean that Tullow is meeting its resource addition targets and expects to deliver in excess of 200mmboe in 2014. We have an exceptional exploration portfolio and will drill over 40 wells in the next 18 months in a wide-ranging campaign.”
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