Friday, February 22, 2013

Africa Oil bags Ethiopian block

Canadian explorer Africa Oil has secured a new Ethiopian tract in the so-called East Africa rift basin play that is believed to be on trend with a pair of discoveries farther south in Kenya.
The Toronto-listed company said on Thursday it has signed a production sharing agreement covering the 42,519 square-kilometre Rift Basin Area block, where it has already carried out survey work under an earlier joint study pact.
The new licence is located north of the Tulllow Oil-operated South Omo block, in which Africa Oil holds a 30% stake, where the Sabisa-1 exploration well was recently spudded.
It is believed to be on trend with that Ethiopian block in the Tertiary rift valley as well as other prospective tracts in Kenya - 10BA, 10BB, 13T, and 12A – where Tullow, in partnership with Africa Oil, has recently made the Ngamia-1 and Twiga South-1 discoveries.
The acquisition of the new block builds upon Africa Oil’s gross acreage holdings in the East African onshore fairway of more than 250,000 square kilometres.
The company said satellite-imaged natural oil slicks were spotted during earlier airborne high-resolution gravity and magnetic surveys carried out on the block, indicating the presence of an active petroleum system.