DECA

South Omo Oil Project Update, Ethiopia

RNS Number : 6946K
Agriterra Ltd
24 August 2012
 



Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector: Agriculture

24 August 2012

Agriterra Ltd ('Agriterra' or 'the Group')

Africa Oil Reports 2.7 billion barrels for South Omo and

Tullow to drill first well in Q4 2012

 

Agriterra Ltd, the AIM listed pan African agricultural company, is pleased to report a significant development in respect of the 29,465 sq km South Omo Block ('South Omo') in Ethiopia, a concession in which Agriterra holds a 20% legacy working interest, along with Africa Oil Corp. ('Africa Oil', holding a 30% interest) and Tullow Oil plc ('Tullow', holding a 50% interest).

 

As announced by Africa Oil, an independent assessment of the prospective oil resources of the South Omo Block has produced a total "gross unrisked prospective resource" estimate of 2,700 MMBbl on the South Omo Block, ("gross unrisked prospective resources" being 100% of the volumes estimated to be recoverable from the field). Additionally, Africa Oil reported that Sabisa-1, the first well planned for the South Omo Block, is targeted to be drilled by the end of 2012, following Tullow's rig contract negotiations in Ethiopia, which are nearing conclusion. 

 

Shareholders are recommended to read Africa Oil Corp's full release, available at www.africaoilcorp.com, which contains additional information on the prospective resources reported at South Omo. 

 

South Omo, which lies within the Tertiary age East African Rift just north of Lake Turkana,is part of one of the last great rift basins to be explored in East Africa.  New discoveries have been made in neighbouring areas, which include Tullow's already successful multi-well drill campaign in Block 10BB in Kenya, which is located within the same petroleum system as South Omo.  Seismic and gravity data from Africa Oil show robust leads and prospects throughout the South Omo Project area. 

 

Agriterra CEO Andrew Groves said, "With a gross unrisked best estimate prospective resource of 2.7 billion barrels reported by Africa Oil for South Omo, the value of our stake in the block continues to appreciate.  These results combined with successful drilling in the same petroleum system confirm the high prospectivity of the concession and we are extremely excited about the prospect of the first well being drilled by the end of the year.  This is an exciting time for the Company with the agricultural and ranching businesses going from strength to strength.  I believe the potential for great value uplift is possible and I look forward to updating shareholders on developments in the near future."

 

Additionally, as announced on 25 May 2012, Agriterra awaits payment of £11 million, as being partial recompense for the work undertaken and the substantial investment made by the Company on the Block Ba oil concession area in South Sudan, during its previous incarnation as White Nile Limited.

 

**ENDS**

For further information please visit www.agriterra-ltd.com or contact:

Andrew Groves

Agriterra Ltd

Tel: +44 (0) 20 7408 9200

Jonathan Wright

Seymour Pierce Ltd

Tel: +44 (0) 20 7107 8000

David Foreman

Seymour Pierce Ltd

Tel: +44 (0) 20 7107 8000

Andy Cuthill

MC Peat & Co LLP

Tel: +44 (0) 20 7104 2332

Hugo de Salis

St Brides Media & Finance Ltd

Tel: +44 (0) 20 7236 1177

Susie Geliher

St Brides Media & Finance Ltd

Tel: +44 (0) 20 7236 1177

 


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