Tullow Oil strikes black gold in Uganda
BRITISH oil firm Tullow has struck a new deposit of black gold in western Uganda, the firm said yesterday.
The FTSE 100 firm said exploration in the Butiaba region hit about 10 metres of net oil pay, after drilling to a depth of 587m.
Tullow already has three licences to drill in the region, after acquiring Hardman Resources and its operations in 2007.
Angus McCoss, Exploration Director, said: “Another successful well in the Butiaba appraisal campaign further enhances our understanding of these high quality stacked fluvial reservoirs and will assist with the basin-wide development plan that Tullow and its new partners will be working on during the second half of 2010.”
Tullow is set to start a £6.6bn expansion in Uganda after the government gave the green light to its takeover of Heritage Oil’s stakes in exploration blocks in the region earlier this month.
However, its operations in the Congo are under threat after authorities stripped Tullow of its oil blocks near Lake Albert to award them to smaller firms.
AShares in the firm closed 8p up at £11.43.