Africa Oil, along with its partners at Tullow Oil, said Tuesday a gas discovery was made in the so-called Block 9 in Kenya. Africa Oil said it tested its well at a maximum rate of 6 million cubic feet per day and there were "small amounts of oil" recovered during the drilling process.
"The company believes there is a very strong market for gas development in Kenya and have already engaged in discussions with power companies and the government to potentially fast track a gas to power project that could add significant value and create benefits for the people of Kenya," Africa Oil said in a statement.
The Kenyan government last year unveiled a strategy to increase its power generating capacity by 5,000 megawatts by 2016. Part of the plan relies on importing liquefied natural gas.
Africa Oil, which has headquarters in Canada, said the discovery of gas in Block 9 offers the Kenyan government a cost-effective source of energy for its 2016 power ambitions.
The company said it was considering future appraisal work in the Bogal reserve area in Kenya.
"The gross best estimate of prospective resources for Bogal are 1.8 trillion cubic feet of gas," the company said.