Seismic reflections: East Africa: Ready to roar?

Published on 21 September 2012

The East African offshore play has proven to be extremely prolific, with gas discoveries off Mozambique, Tanzania and Kenya. While exploration continues, much of the frontier drilling has finished, leaving appraisal and development as the next steps. As a result, we believe many investors will look for the next exploration province. One candidate is East Africa onshore, which we wrote about in our 1 June report East Africa: More to explore? Exploration is still in its early stages. A number of basins are the subject of frontier drilling in the coming quarters, leaving considerable uncertainty, but also potentially high rewards. Ngamia-1 found over 100m of net pay in multiple zones and Africa Oil has seen a 2.5x rise in its share price since April 2012 and 5x since January.

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