Story by Bloomberg<\/p>\n
Tullow Oil Plc fell the most in more than two weeks in\u00a0London\u00a0after the oil explorer said a test well in\u00a0Kenya\u00a0failed to find viable crude deposits.<\/p>\n
The\u00a0shares\u00a0fell 2.3 percent to 759 pence, the biggest decline since March 13. Partner African Oil Corp. fell 11 percent to 44.3 kronor in\u00a0Stockholm.<\/p>\n
The Emong-1 exploration well in Block 13T \u201cencountered poorly developed oil-bearing reservoir sands,\u201d Tullow said in a statement. The well was drilled about 4 kilometers (2.5 miles) to the southeast of the Ngamia-1 discovery.<\/p>\n
The two partners have found enough oil in Kenya to make local field development commercially viable. The companies expect to start production and possible sales as soon as 2016, making the first oil exports from East Africa.<\/p>\n
\u201cThe market will already have assumed a hit\u201d in Emong because of its proximity to Ngamia, Investec Bank Plc wrote in an e-mailed report. \u201cThis result will test simplistic assumptions in the market about the drillout of the remaining\u201d potential reservoirs in the area.<\/p>\n
The partners also drilled the Etuko-2 well in Block 10BB, which was \u201cdesigned to evaluate a very shallow reservoir zone,\u201d London-based Tullow said. The well was drilled to 650 meters (2,132 feet) depth and \u201cflowed water with oil shows.\u201d<\/p>\n
The companies completed tests on the Ekales-1 well in Block 13T, which flowed a combined rate of over 1,000 barrels of oil a day, Africa Oil said in a statement.<\/p>\n
\u201cWater from Etuko-2 is disappointing,\u201d\u00a0Oswald Clint, an analyst at Sanford C. Bernstein & Co. in London, said in an e-mailed report. \u201cEkales flowrates could be better but still likely sufficient for development.\u201d<\/p>\n
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