TULLOW Oil is optimistic that Kerio Valley basin has significant oil deposits following initial tests.
In an operation update posted on Wednesday, the British firm said the tests show a sign of positive prospects at the Cheptuket-1 well in Block 12A, in Rift Valley.
"The objective of the well was to establish a working petroleum system and test a structural closure in the south-western part of the basin," Tullow said.
It added :"The strong oil shows encountered in Cheptuket-1 indicate the presence of an active petroleum system with significant oil generation."
The oil exploration firm said the post-well analysis is underway and will determine the future exploration programme in the basin.
Tullow has 40 per cent shares in Block 12A, Delonex Energy has 40 per cent while Africa Oil Corporation holds a 20 per cent stake.