Oil and gas group Dominion Petroleum (LON:DPL) this morning reported that its Ngaji-1 well in Block EA4B in Uganda had not encountered any significant hydrocarbons after reaching a total depth of 1765m. The well, the first ever drilled in the Lake Edward Graben, was designed to test the geology of the basin and will now be the subject of a full suite of logging, coring and a vertical seismic profiling. Dominion had previously said that the well would not only guide future activity in Uganda but also impact on its exploration activities in Block 5 of the Democratic Republic of Congo, with Ngaji being a test of the Lake Edward basin geology as a whole, in both countries.

The latest well analysis will support the layout and design of a 2D seismic programme later this year and subsequent exploration drilling next year. Furthermore, the Ngaji-1 well may be suspended to provide for possible deviated drilling under Lake Edward next year to test a lead down-dip of the current location.

Andrew Cochran, Dominion’s chief executive, said: “We are pleased with the geology observed in Ngaji as it demonstrates key elements of a prospective basin which had otherwise been fundamental risks in the Lake Edward Graben of Uganda and D.R. Congo. While stronger indications of hydrocarbons were hoped for, the well supports our planned exploration programme for the whole basin in both countries over the next couple of years. As part of that programme we should see seismic operations start in the fourth quarter of 2010 and a resumption of drilling in 2011.”

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