OIL and gas operators Tullow Oil and Heritage Oil have reported a “significant” new oil discovery at an exploration well in Uganda, which they said was potentially the largest in the Butiaba area to date.
Tullow said the Buffalo-1 exploration well encountered almost 50 feet of net gas pay and about 92ft of net oil.
Chief executive Aidan Heavey said: “With many prospects still to drill in the Butiaba region and across the basin, we are now certain that the commercial threshold for development should be exceeded.
“We have assigned a dedicated team to deliver a commercial development plan for the overall basin.”
The company said the oil and gas columns found had the potential to be even larger, and was bigger than a previously announced Tullow and Heritage Kingfisher find, which the partners have described as the biggest land discovery in sub-Saharan Africa.
Tullow and Heritage hold 50% equity each in the licence where the discovery was made, with Heritage as the operator.
Shares in Tullow Oil gained 8.5% or 48.5p to 620p and Heritage’s shares added more than 6% or 14.75p to 235p.