Reports leo Odera Omolo

THE hunt for oil and gas in the West Nile is progressing well, Neptune Petroleum Uganda, the firm that is conducting the exploration, has said.

The firm also revealed last week it would soon release results of the recent aero-gravity gradiometry survey that sought to gather more definitive information on the earth basement.

The study, completed in June, was commissioned to specifically identify structures with more prospective oil reservoir properties.

This was after the firm hit two dry wells in its previous drilling attempts. The ‘dry’ wells are Iti-1, which was drilled in June 2009 and Avivi-1, which was in February drilled to a depth of 764 metres, but did not encounter any oil.

However, further analysis of the data from the two wells confirmed the ‘generation and migration’ of oil in the exploration area. This development prompted Neptune to hire a team of experts from the British geo-physical survey firm, ARKeX, to do a more scientific study.

Tower Resources plc, a London-based oil and gas exploration company that owns Neptune, said a final interpretation of the data that was collected is expected at the end of this month.

Also, around this time, planning for a subsequent seismic survey will be finalised, the firm said. “This update confirms that current operations are on schedule.

“The quality of information being obtained is likely to enhance interpretation of the Uganda licence,” Peter Kingston, the Tower Resources chairman, explained

The seismic interpretation would also provide the basis for selecting a third well location, Kingston added. Previously, Kingston said, the target was to be ready to drill a third well, the commitment well, as designated in the production sharing agreement, in 2011.

This would, by design, allow time for a follow-up programme, if required, since the firm’s current licence expires in March 2012

Ends