Oranto and Armour get licences back in Uganda

Uganda has renewed exploration licences for Nigeria’s Oranto Petroleum Ltd (OPL) and Australia’s Armour Energy, allowing the companies to progress with well drilling that will confirm the viability of the oil and gas deposits in the new blocks where initial investigations have shown positive prospects.

In 2017, the ministry of Energy and Mineral Resources issued exploration licenses and production sharing agreements (PSA) to Oranto Petroleum and Armour Energy Litd at the same time. The four-year long licences have two phases each with two years of operation. The first two years ended in October 2019.

The renewed licences allow the companies to reprocess existing seismic data, acquire new seismic data, carry out geophysical and geological studies as well as feasibility studies for drilling.

“The first two years period ended in October and they fulfilled the work programme which includes technical studies and using 2Dimension technology. The minister renewed their licences for the second two years period where they are expected to drill wells,” said Gloria Sebikari, spokesperson for the Petroleum Authority of Uganda.

Armour is doing exploration at Kanywataba block (344 square km). The company considers the block to be very good as discovery of oil at King Fisher and presence of oil seeps confirm working petroleum.

Oranto is exploring at Ngassa contract area covering 410 square km. The ongoing exploration activities is raising hope of additional discoveries going by current seismic data.