“Promising” oil find in South Omo block

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A new report suggests that Africa-focused agriculture firm Agriterra’s legacy oil interests in Ethiopia may hold up to 2.7 billion barrels.
The other partner in the venture Canadian based Africa Oil said the figure was a best case, gross unrisked estimate derived from an independent review of the South Omo block in Ethiopia.
Agriterra has a 20 per cent stake in South Omo with Africa Oil owning 30 per cent and the London United Kingdom based Tullow Oil  50 per cent. Tullow has already made a discovery on its own block in Kenya, which is located within the same petroleum system as South Omo. 
Tullow Oil, has also stakes in Uganda where it first found oil in Uganda’s Lake Albert Rift Basin and then extended its exploration to the East African Rift Basins of Kenya and Ethiopia in 2010. While the Vancouver based Africa Oil, has already previously bought exploration areas in Ogaden basin, Kenya and Puntland. These concessions were previously held by Lundin Petroleum, the Swedish petroleum company.
Recently the company has successfully accomplished its exploration in Puntland, part of the former Somalia, which is now a peaceful and independent state although it is not internationally recognized.   
The first well planned for the South Omo Block Sabisa-1, is now targeted to be drilled by the end of 2012, following Tullow’s rig contract negotiations in Ethiopia, which are nearing conclusion, Agriterra added.
South Omo is situated within the Tertiary age East African Rift just north of Lake Turkana in neighboring Kenya which itself has recently found promising signs of substantial oil reserves, one of the last great rift basins to be explored in East Africa, said the company. 
Seismic and gravity data from Africa Oil show robust leads and prospects throughout the South Omo Project area, Agriterra said.
Chief executive of Agriterra Andrew Groves added the results combined with successful drilling in the same petroleum system confirmed the high value of the concession.
He said he was also “extremely excited about the prospect of the first well being drilled by the end of the year.”
He added that with the agricultural and ranching businesses going from strength to strength there is the potential for “a great value uplift” at Agriterra.