Tullow involvement in South Omo is a significant step forward
South Omo has some promising geology. It is within the tertiary age East African Rift and in the same petroleum system as Africa Oil’s Kenya Block 10BB and Tullow’s Ugandan discoveries.
Agriterra chairman Phil Edmonds said: “This is a significant step towards accelerating exploration on the South Omo Block, which will be guided by a leading E&P company with extensive practical experience of operating in Africa.
“Tullow has an exceptional technical and operational track record, with an excellent success rate in regard to exploration.
“This expertise has been demonstrated by Tullow’s successful development of its Ghanaian and Ugandan blocks, and I believe that this experience, which includes expertise in the East African Rift Basin, presents Tullow as an extremely attractive operator to drive exploration on the concession.
The Tullow farm-in was concluded in December and signed off by Ethiopia’s Ministry of Mines on February 22.
It could be a major value kicker for Agriterra, which will get a free carry through to drilling.
Edmonds said: “Exploration programmes on the South Omo block will be funded by Tullow and Africa Oil, as per our original farm-out agreement with Africa Oil, which included sufficient credits from Africa Oil to Agriterra to take the concession through to drilling.
“The exploration programme, which has been approved by the Ministry of Mines and Energy in Ethiopia, will commence shortly.”