Neptune Petroleum, the company prospecting for oil in the West Nile, has applied to continue exploration in Uganda for two more years despite receiving no positive results on previous ventures.
Neptune Petroleum is wholly owned by ...-based Tower Resources. It has been given a license for oil exploration in block EA5 of the Albertine Valley, which extends through Arua and Nebbi districts.
Neptune Petroleum wells, Avivi-1 and Iti-1, have not yielded any oil. They have however encountered thick sequences of organic rich sediments, which are likely to represent good mature source rocks in the deeper areas of the Lake Albert basin.
A press statement issued by Neptune Petroleum says it has tendered a fresh application to the Minister of Energy and Mineral Development. The new exploration period will extend from March 27th 2010 until March 26th 2012.
The company says funding for its third exploration period will cost 3.5 million dollars, which it is confident it will reimburse through future oil investments.