The assessment by independent advisory company Risc Operations indicated a net prospective resource of between 38.4 million barrels and 339.2 million barrels to the joint venture with a best estimate of 120.8 million barrels.
“Otto is highly encouraged by the initial results from analysis of the Kito prospect, this is endorsement of our investment decision in 2012 and supports Otto’s increased strategic focus on East Africa,” Otto chief executive Gregor McNab said.
“Kito is a material prospect, and based upon recent success in similar settings in the East African Rift System, we expect further material prospects to emerge as we undertake more exploration in 2014.”
Despite the positive assessment, Swala noted that the Kito prospect only carried a chance of discovery in the range of 8% to 9%.
The work programme on the Kilosa-Kilombero licence requires the joint venture to either shoot 500 line kilometres of 2D seismic or drill one well.
Swala said the joint venture was in discussions with the Tanzanian Petroleum Development Corporation over the possibility of focusing its activities next year over the Kito area as it aims to fast-track the prospect to the drilling phase.
Otto holds a 50% interest in the Kilosa-Kilombero licence, while Swala has a an indirect 32.5% interest in the licence through its 65.13% interest in operator Swala Oil & Gas which holds the other 50% stake in the licence.
*Josh Lewis, Upstreamonline