Report predicts Uganda to be Africa's new oil province

Oil discoveries on the shores of Lake Albert in northwestern Uganda have made the east African country a new potential African oil province, according to a report issued Friday by Hardman Resources, the company that has carried out explorations in the area.

The company said that exploration results in Uganda continue to excite, with better than expected flow rates achieved in the recent tests and a successful appraisal well.

"We are actively planning aggressive further exploration to follow up these discoveries, which have opened up a new potential African oil province," said Simon Potter, the Hardman chief executive.

According to Hardman and its partner Tullow Oil, final test results from one of Uganda's oil wells, Waraga-1 were highly positive with aggregate flow rate of over 12,000 barrels a day.

The companies are now relocating to Mputa 1, another oil well with test expected to commence next month.

The joint venture is also planning a further onshore exploration and appraisal-drilling program in the second half of 2006, likely including the Nzizi prospect, as well as evaluating options for future drilling of the large Ngassa prospect offshore Lake Albert.

Another oil exploration company, Heritage Oil and Gas announced this week that it is launching an oil exploration program at Kingfisher-1 well site on the shores of Lake Albert.

"This prospect has the potential to contain significant reserves of oil," said a statement from the company.

Micael Gulbenkian, a top official from Heritage Oil, said test results from Waraga-1 well have significantly increased the exploration potential of the Albert Graben.

Earlier evaluation showed Uganda has a potential of producing more than 4,200 barrels of oil per day from the initial 1,500 barrels confirmed in June, bringing high hope for the oil importing country to become an oil producer.

Uganda has been fully dependent on the imported fuel through the Mombassa port in Kenya.

Source: Xinhua