An Austalian oil and gas company has estimated that the first well block in Block 12B, within Nyanza Basin could have more than Sh22 million barrels of crude deposits.
The oil firm, Swala Energy, holds similar exploration interests with UK Tullow Oil, which in collaboration with Africa Oil Corporation of Canada has been attached to many discoveries within the country.
The announcement however came at a time when global prices of crude oil remain low, trading at USD50 a barrel.
Swala and Tullow have set the second half of the year as the deadline for drilling activities within Ahero A well.
Analysts have however warned of prevailing prices being too low, however reckoning that the situation is temporary and will normalize very soon.
They also say that it can only be viable with prices starting form USD70 a barrel. Saudi Arabia, a crude material giant says it can only survive the current prices for a minimum of four years beyond which serious measures will have to be taken.