Tullow Oil, a multinational gas and oil exploration company headquartered in London, said it has found indications of the existence of oil with its concessions in the South Omo Basin, Southern Regional State of Ethiopia.

The company, in joint venture with Africa Oil (30pc) and Marathon Oil (20pc), began drilling a well in its Sabisa-1 bloc last January, 2013.

Tullow Oil said, it have so far drilled 1,800 meters down, but was challenged by an unstable condition which compelled the explorers to sidetrack by 800 meters, in their bid to get samples for further examination.

“We're encouraged by the hydrocarbon indications, which provide emerging evidence for a working petroleum system in the previously undrilled South Omo Basin,” says Angus McCoss, exploration director of Tullow Oil, in a statement the company issued today, April 15, 2013.

Final test results are due next month, according to sources in the company.

Source: Fortune