The reporter( Addis ababa mouth piece) puts a spin on it.
Africa Oil to Pull Out from Adigala block in Ethiopia
Africa Oil, a Canadian Oil company with oil exploration projects in various parts of Ethiopia, disclosed it will withdraw from the Adigala block in eastern part of Ethiopia.
Adigala block is found near Somalia and Djibouti border. Africa Oil stated the company and its partners had completed a 1,000km 2D seismic program in the block from which it holds a 10 percent interest. New Age and Genel Energy have 50 and 40 percent working interest respectively. The company decided to pull out of the block after it assessed the results of the seismic survey and informed the Ethiopian Ministry of Mines and its partners of its decision.
Details had not been communicated by the company as to the reason behind its decision to pull out from the block.
Africa Oil made the same decision on Block 7/8 in the Ogaden basin last year. After drilling El Kuran-3 appraisal well on Block 8. Although, El Kuran-3 well exhibits oil and gas potential, the company did not consider it warranted further evaluation as a result of concerns over the reservoir quality and commerciality.
Source: The Reporter
