Africa Oil (AOI.TO) confirmed last month it has encountered 75 meters of net oil pay in two zones of the Emekuya 1 well in the 13T Block in Northern Kenya. The well was drilled less than 3 kilometers north of Etom 2 and encountered reservoir-quality sandstone which are pretty much the same as encountered at Etom 2.
Africa Oil also said the sands ‘appear to be extensive’, and that’s a good sign for the exploration potential of the wider region and perhaps AOI will be able to continue its flawless exploration track record. Four more wells will be drilled, and this will give us a better overview of the total potential size of Africa Oil’s oilfield. London-listed partner Tullow Oil (TLW.L) will probably also be very happy with the developments, and we expect the oilfields to be developed sooner rather than later. A new pipeline which will link the oilfield with the coast will also reduce the transportation-related expenses.
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