Oil find in Uganda

Western oil company Tullow strikes black gold in Uganda, and it looks like the government managed to strike a pretty good deal:

Reports of a deal between Tullow Oil and the Ugandan government suggest that for every ten barrels found by Tullow, the government gets eight. This would represent a huge windfall for the landlocked East African country, where annual gross domestic product is estimated at $14.53 billion.

If a suitable pipeline to the coast in Kenya or Tanzania can be built, the nation could could become a significant oil exporter.

Hopefully this turns out well, but there is reason to be cautious.