Oranto Petroleum has received a two-year extension on its exploration licences for the Ngassa block in Uganda’s Hoima and Kikuube districts. This extension grants the Nigerian oil explorer the opportunity to proceed with exploration and appraisal wells in the area.
Initially issued in 2017, the exploration licences cover both shallow and deep areas within the 410 square kilometre Ngassa block. The licences were part of a production sharing agreement inked with the Ugandan government, encompassing two exploration periods, each spanning two years.
The recent extension, granted in 2021, comes after Oranto Petroleum cited disruptions to its activities in the prior year due to the COVID-19 pandemic.
Situated within Exploration Area 2, previously under the jurisdiction of British oil company Tullow before its return to the government in 2011, the Ngassa block remains relatively unexplored. Despite two deviated wells drilled between 2007 and 2009 onshore at the block’s periphery, a substantial portion remains untested, as indicated by the Petroleum Authority.
Oranto’s endeavors within the Ngassa block have encompassed extensive exploration, including 2D seismic studies across 326 square kilometres, reprocessing existing seismic data, petrophysical studies of the drilled wells, drilling solution assessments for Lake Albert, and engaging in stakeholder meetings and workshops.
The company’s forthcoming plan involves drilling an exploration well within the block to reduce uncertainties surrounding the potential for petroleum resources within its concession. Any viable reserves discovered will be subject to government reimbursement of the company’s investment expenses, per the terms of their agreement.
