Exploration firm Tullow Oil has reported progress at its Kenyan operations, with a new discovery and upgraded resource estimates following flow testing at the South Lokichar Basin.

In an operational update ahead of its half yearly results, which will be released at the end of the month, Tullow said it had also received government approval in Uganda for its second offshore project.

The company said it had made a new discovery at Etuko-1 in Kenya, following drilling May. The new oil discovery has a net pay of over 40 metres, and was discovered in the Auwerwer and Upper Lokhone targets. Results from the Lower Lokhone sands are expected by the end of the month.

Resource estimates for the South Lokichar Basin were upgraded following highly successful flow testing of Ngamia and Twiga-South.

Chief executive Aidan Heavey said the firm had made "major progress" over the past two months.

“In Uganda, we have made substantial progress with our partners and the government and expect to sign a memorandum of understanding which will outline the key principles for the development of the Lake Albert Basin development,” he said.

Tullow is planning to drill 20 exploration wells in the second half of the year, targeting multiple basins in Kenya, Ethiopia, Mozambique, Mauritania, French Guiana and its first operated well in Norway.