By John Daly
(Oil Price) Sitting athwart the headwaters of the Blue Nile, Ethiopia has long seen its energy future in its hydropower potential, being able to export electricity to neighboring countries.
That picture may be about to be somewhat altered however. British oil firm New Age (African Global Energy) Ltd works a concession in Ethiopia’s southeastern Ogaden basin blocs 7-8 and its Adigala lease with its Canadian oil firm partner Africa Oil.
On 12 February New Age (African Global Energy) Ltd found an oil and gas flow at its Elkuran-3a appraisal well depth of 3,900 feet. The company began drilling the appraisal well in October 2013, with a targeted depth of 9,350 feet.
While New Age (African Global Energy) Ltd executives are doubtlessly excited, local petroleum specialists noted that the results are similar to those of American company Tenneco that drilled the first exploration well in the Elkuran locality in 1972. A petroleum expert told the Ethiopian media that the discovery does not necessarily mean that there is a commercial deposit, commenting, “Oil and gas flows are very common in that region, especially in the Elkuran and Hilala localities. More exploration work is needed.” Read more on Oil Price…