Agriterra Ltd is an AIM listed agricultural company with five divisions: beef, maize, cocoa, fruit and palm oil. Its cattle ranching business, Mozbife, has a herd in excess of 6,200 head, a land holding of over 21,000 hectares, a feedlot, a 4,000 head per month capacity abattoir and retail units. In addition to selling meat from its own herds, throughput for the feedlot and abattoir is supplemented with cattle bought in from local communities. The Company also owns a proximal banana plantation and macadamia orchard.
Agriterra (LON:AGTA) said that Tullow Oil's (LON:TLW) recently-announced successful drilling in Kenya is "significant" news for the company.
Yesterday, Tullow said it had made a good oil discovery in its first well on the Ngamia structure in block 10BB in Turkana county.
Agriterra, a pan-African agricultural group, has a 20 per cent interest in the 29,465 sq km South Omo block in Ethiopia - in the same petroleum system as block 10BB.
Its chief executive Andrew Groves said the news was significant for the firm.
"Exploration programmes on the South Omo block are being conducted by Tullow and Africa Oil, as per our original farm-out agreement with Africa Oil, and with a discovery already made in the same petroleum system, the prospectivity of the South Omo Block only increases."
Agriterra has a 20 per cent interest, Africa Oil Corp has 30 per cent, while Tullow has 50 per cent.
The Ngamia structure is the first prospect to be tested as part of a multi-well drilling campaign by Tullow in Kenya and Ethiopia.
Agriterra noted that the oil major had said the result was "an excellent start" to its major exploration campaign in the East African rift basins of Kenya and Ethiopia.
Tullow added: "To make a good oil discovery in our first well is beyond our expectations and bodes well for the material programme ahead of us."