Companies: TLW   

Tullow Oil has found oil and gas in its Ngege-1 exploration well in Uganda’s Lake Albert Rift Basin.

The fully listed company says Ngege-1 encountered five metres of net oil pay and nine metres of net gas pay, adding that down-hole pressure testing and sampling have confirmed the presence of dry gas and moveable ‘30-32 degree API oil’. According to Tullow, the results from Ngege-1, in the Butiaba region of Uganda, have confirmed the presence of a well-developed reservoir and seals, and ‘thereby upgrade several other prospects which are included in the current drilling campaign’.

Chief executive Aidan Heavey points out that this is the 11th well in the basin to encounter hydrocarbons and says the company is ‘very encouraged’ by its potential. Tullow shares, first recommended by Growth Company Investor five years ago at 72p, have now reached 989p, valuing the company at £7.1 billion, and should continue to outperform several sector peers. 

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