Neptune Petroleum Company has returned to Arua district to restart its oil exploration program.
Neptune suspended its oil drills in Rigbo sub-county in Arua in June when its Iti-1 exploration well came up dry. A statement issued by the company at the time said the reservoir at that location could not justify further testing or the immediate move to drill a second well.
The news of the failed exploration project caused a 43 percent drop in the stock of Tower Resources, Neptune's parent company.
However on September 21st Tower Resources released new data based on detailed evaluation of information from the Iti-1 well. It said analyses and interpretations have been carried out by independent experts in the UK found that the Iti-1 well actually had significant potential to contain oil just above basement between 540 and 575 meters.
Now Neptune Petroleum is ready to begin again.
Marilyn Hill, Neptune's Country Director, says drilling will take place at Nsambya and Logbo, which are both located in Rigbo sub-county. She says oil drilling swill start in February next year and will cover the Neptune exploration block that stretches from Wadelai in the northeastern Nebbi district all the way to Obongi County in Moyo.
Neptune is currently holding meetings with district leaders to discuss oil revenue sharing agreements.
Richard Andama, the Arua LC5 chairperson, says he is optimistic about the success of the drilling program. He says an oil find in the West Nile could fast track industrialization in the region and finance the construction of schools, hospitals and roads.
Neptune started operations in Uganda in the middle of last year and committed to invest at least 700,000 dollars in the initial stage of exploration.