After years of exploration, crude oil has finally been discovered in commercial quantities at the Cape Three Point area in the Western Region Ghana. A UK oil and gas exploration company made the discovery on Friday. The company obtained an exploratory license in 2003 and has been conducting exploration works for some time now. Last Friday’s oil strike was made in the company's first exploratory well. Further testing would be required to establish the number of barrels that can be produced from the well in a day. But sources close to the company are optimistic that it could produce more than half of the forty thousand barrels of crude oil Ghana requires in a day. Reuters news agency reported on Monday the UK-based oil explorer Tullow Oil Plc was the company involved, confirming it had made a significant oil discovery. Tullow said in a statement that an exploration well hit a large hydrocarbon column. Industry sources said its size suggested the field is now likely to contain at least 300 million-400 million barrels of oil. The structure drilled extends into an adjacent exploration block in which Tullow has a 49.95 percent interest, suggesting material reserves could also be present there. "The discovery of oil in the Mahogany well represents a major event for the Republic of Ghana and for Tullow. Based on evidence to date, ultimate reserves are likely to be materially in excess of previous estimates," Chief Executive Aidan Heavey said in a statement. An official announcement is expected from government on Monday.