Tullow Oil plc (LON:TLW) shares advanced on Wednesday after the exploration and production firm unveiled its latest success in Kenya.
The Emekuya-1 well, in Block 13T, encountered a 75 metres of net oil pay, the company revealed in a statement.
The well is located some 2.5 kilometres from the prior Etom-2 well, and has hit reservoirs that correlate to those seen at Etom, and the company says the results suggest that a major part of the Greater Etom structure is oil-filled.
In London, Tullow shares climbed 4.4p, 2.2%, to trade at 205.6p.
Emekuya-1 well de-risks future exploration
Tullow noted that reservoir sands encountered also appear to be extensive, meaning that the result further de-risks the northern play area and bodes well for future exploration efforts.
"The Emekuya-1 exploratory appraisal well has made an important discovery in the northern part of the South Lokichar Basin,” said Angus McCoss, Tullow Oil’s exploration director.
“This well has proven oil charge across a significant part of the Greater Etom structure and we are very encouraged by the quality and particularly the regional extent of the reservoir.
“We now look forward to the remainder of the Kenya exploration and appraisal campaign in support of the ongoing work to prepare this important asset for Full Field Development."
Tullow highlighted that the rig will now be moved and the next well would be an appraisal of the Greater Etom structure.
Caren Crowley, analyst at Dublin based broker Davy, in a note said: “In total, three wells have been drilled on the structure and each well has encountered oil.
“This, together with the separate Erut-1 discovery, offers a potential for a third development hub in the basin and brings the group further along the path to realising a return on capital allocated to Kenya.”