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Tullow Acquires 50% Interest Of The East African Rift Basins Of Kenya, Ethiopia - Quick Facts

(RTTNews) - Tullow Oil plc (TLW.L) Thursday said it would acquire 50% operated interest in six adjacent licences covering the East African Rift Basins of Kenya and Ethiopia, an area of 97,000 sq km.

The oil and gas exploration and production company has signed agreements with Africa Oil Corp to gain a 50% interest in five licences; Blocks 10BB, 10A, 12A and 13T in Kenya and the South Omo Block in Ethiopia. This acquisition expands on the farm-in to Block 10BA from Centric Energy.

Under the terms of the agreements with Africa Oil, Tullow will reimburse pro-rata past costs in each of these blocks and will carry Africa Oil for future net expenditures up to US$23.75 million.

The East African Rift Basin acreage shares many geological attributes with Tullow's Lake Albert Rift Basin position in Uganda however it is approximately ten times larger. Seismic programmes are planned for the acreage in 2010 and 2011 and the first wells are expected to be drilled next year, the company added.