Africa Oil Corp (AOIFF)

[douginil]

Tullow Oil plc (Tullow) issues the following Trading Update, for the period 1 January to 28 April 2016

http://www.tullowoil.com/media/press-releases

includes:

- East Africa Governments agreed to develop resources in Uganda and Kenya with separate export pipelines.

- Ongoing assessment of recently completed South Lokichar appraisal programme in Kenya indicates potential to increase recoverable resources up to 750 million barrels with further exploration potential supporting an upside of 1 billion barrels.

- Working hydrocarbon system discovered with the Cheptuket-1 exploration well in Kenya’s Kerio Valley Basin.


Further comment

East Africa

In Kenya, the result from the basin opening Cheptuket-1 well in the Kerio Valley Basin was announced in March. The well encountered good oil shows, seen in cuttings and rotary sidewall cores, across an interval of over 700 metres and post-well analysis is still in progress. Following this encouraging basin opening well and the successful Etom-2 result in the South Lokichar Basin in December 2015, further exploration activities are being evaluated.

At a meeting between various East African Governments in Kampala on 23 April 2016, it was agreed that Uganda and Kenya would develop separate, standalone export pipelines for their oil resources. Tullow welcomes the clarity and certainty that this decision brings. In Uganda, Tullow will now work with the Government of Uganda and our partners on the development of these significant resources through a Uganda-Tanzania pipeline. In Kenya, the Group continues to examine the data from its recently concluded appraisal campaign and our initial assessment indicates recoverable resources of up to 750 million barrels of oil in the South Lokichar Basin. The Group continues to review options for re-starting the exploration campaign in this basin to de-risk the overall upside potential of 1 billion barrels. Tullow will now work with the Government of Kenya and our partners on a range of options for the independent development of these resources including early production using existing infrastructure which would provide valuable reservoir data ahead of a full field development with an export pipeline.

read more at: http://www.tullowoil.com/media/press-releases