New Age has discovered oil and gas flow in its appraisal well El Kuran-3 located in Block 7/8 in Ethiopia
The UK company, with assets in the Ogaden Basin, began drilling the appraisal well in October 2013 with a target depth of 2,850 metres.
According to sources, oil and gas deposits could be seen at intervals while drilling. The findings were similar to the ones made by American company Tenneco in 1972, which drilled the first exploration well in the El Kuran locality.
A petroleum expert, however, said that oil and gas flow does not necessarily mean that there is a commercial deposit.
"Oil and gas flows are very common in the region, especially in the El Kuran and Hilala localities. More exploration work is needed," the expert said.
Since reservoirs at El Kuran-3 have low porosity and permeability, acid or fracture stimulation might be required to produce necessary commercial levels, New Age said.
"The well might be deepened way below the target depth of 2,300 metres to evaluate the sandstone zone, which supposedly has a significant gas-condensate potential," the company added.
