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Origin Energy reveals disappointing Kenya gas well results

BY ROSS KELLY

SYDNEY -- An exploration well offshore Kenya that earlier tapped natural gas has been drilled to its total depth and no more has been discovered, Origin Energy said in its statement. Apache operates and owns 50% of the acreage containing the Mbawa-1 well, while Origin owns 20%, Tullow oil 15%, and Pancontinental the remaining 15%.

Pancontinental said that the well had encountered a 52-m net gas column above its target depth, and that drilling was continuing. Origin confirmed the well had intersected a net gas column of 51.8 m, but additionally disclosed that it was spread across three separate zones.

Origin is encouraged that a reservoir containing hydrocarbons has been discovered and a detailed analysis of subsea information will take place in the coming months to guide future activities in the area, Origin said in its statement.

Mbawa-1 is the sixth exploration well to be drilled offshore Kenya, according to consultancy Wood Mackenzie. Although some oil and gas shows were registered with previous wells, there have been no previous commercial discoveries.

The gas discovery at Mbawa-1 boosts hopes the East African nation may have commercial reserves after big finds in nearby Mozambique and Tanzania.

Dow Jones Newswires

09/12/2012

 

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