Oranto Petroleum said Sunday it’s exploration licences for the Ngassa block in Hoima and Kikuube districts have been extended for two years, with the decision allowing it to drill exploration and appraisal wells.
The independent Nigerian oil explorer was issued two exploration licences in 2017 for the shallow and deep areas of the 410 square kilometre Ngassa block. The licences were part of a production sharing agreement signed with the government, which included two exploration periods of two years each.
Oranto was granted a two-year extension in 2021 after arguing that its activities in the previous year were disrupted by the coronavirus.
The Ngassa exploration block is located in Exploration Area 2, which was initially licensed to the British oil company Tullow. It was returned to the government in 2011.
Ngassa consists of two deviated wells drilled onshore between 2007 and 2009 to access the oil and gas reservoirs under Lake Albert. A significant portion of the block remains untested, according to the Petroleum Authority.
Oranto has conducted 2D seismic exploration of 326 square kilometres of the block, reprocessed existing vintage seismic data, completed a petrophysical study of the two wells, conducted a drilling solution study for Lake Albert, and held a series of stakeholder meetings and workshops.
The company intends to drill an exploration well on the block to decrease uncertainty regarding the petroleum prospectivity of its concession interest. If viable reserves are discovered, the government will reimburse the company for its investment expenses.
