Meren Energy Inc (MRNFF)

[ariadndndough]

Tullow Oil (TLW.L) and Africa Oil (AOI.V): discovery in Kenya - Agete-1 well, fifth from five in Lokichar Basin
Tullow as operator, today announced that the Agete-1 exploration well on Block 13T (AOI 50% and TLW 50%), onshore Kenya, has encountered an estimated 100m net oil pay in good quality sandstone reservoirs; more guidance is required on the discoveries size – the well will be suspended for future flow testing which will confirm the net pay count – but the well was targeting staked objectives and pre-drill we calculated upside/risk of +36p/-16p and C$1.66p/-$0.71 per share, for Tullow and Africa Oil, respectively.
The rig will now move to drill the Ewoi-1 wildcat in the east of this basin, targeting a rift flank prospect similar to the recent Etuko oil discovery.
This discovery de-risks several follow-on prospects located to the north and on trend with the Twiga South, Ekales, and Ngamia oil discoveries and adds to the significant resource base already discovered.
The Africa Oil operated Bahasi-1 well in the Block 9 (not with TLW) is currently drilling with results expected by the end of December, and an additional two wells are currently drilling in Ethiopia, the Tutule-1 well in the South Omo block, and the El Kuran-3 well in Block 8 (not with TLW), with results also expected before the end of the year.
Source: Company release, RBC Capital Markets SPARC Link