Tullow Oil has said gas and oil has been found at one of its wells in Uganda.
The gas at the Nzizi-3 appraisal well had been expected, but Tullow says the oil discovery will be further evaluated.
'The Nzizi-3 appraisal well takes us a significant step towards first gas production in Uganda by the end of 2011,' said exploration director Angus McCoss.
The company also says it has abandoned the Noix de Coco-1 well off the coast of Gabon, despite encountering gas there, as it was not of good enough quality for commercial development.