http://invezz.com/news/commodities/12010-tullow-oil-share-price-company-fails-to-strike-oil-onshore-ethiopia
Tullow Oil share price: Company fails to strike oil onshore Ethiopia
Africa-focused explorer to plug and abandon well
by Alice Young,
Jul 14 2014, 14:55 BST
iNVEZZ.com, Monday, July 14: Tullow Oil Plc (LON:TLW) has posted another
drilling disappointment onshore Ethiopia, revealing that a well in the
South Omo licence had failed to encounter commercial oil.
As of 13:38 BST, Tullow Oil's share price had lost 0.25 percent to 788p,
underperforming the FTSE 100 benchmark index which currently stands 0.80
percent higher at 6,743.79 points.
Drilling disappointment in Ethiopia
Tullow Oil announced in a statement today that its Gardim-1 exploration
well, drilled on the eastern flank of the Chew Bahir Basin in the South Omo
licence onshore Ethiopia, had failed to encounter commercial oil. The
company noted that the well would now be plugged and abandoned.
"We have now drilled two independent wildcat wells in the Chew Bahir Basin,
neither of which encountered commercial oil," Tullow Oil's exploration
director Angus McCoss said in the statement. Today's results come after in
May the company's Shimela-1 well in the South Omo block encountered water
bearing reservoirs. (Tullow Oil share price: Explorer reveals drilling
disappointment in Ethiopia)
"Having gained valuable data, including evidence of thermogenic gas, we
look forward to the next phase of our exploration campaign in Ethiopia,"
McCoss added in today's statement.
Earlier this month, Tullow Oil unveiled upbeat drilling results offshore
Norway, reporting that a wildcat well in the Barents Sea had encountered a
20-25 metre oil bearing sandstone with good reservoir properties in the Stø
Formation. (Tullow Oil share price: Explorer strikes oil offshore Norway)
The company, which is due to update investors on its first-half performance
on July 30, earlier this month warned that it had booked a $415 million
(£242 million) write-off for the first half of the year following several
exploration disappointments. (Tullow Oil share price: Explorer writes off
$415m of exploration costs) The explorer, however, maintained its full-year
output guidance reassuring investors that it was "extremely well-funded".
As of 14:02 BST, buy Tullow Oil shares at 788.50p.
Prices can go up and down meaning you can get back less than you invest.
This is not advice. Dealing services provided by Hargreaves Lansdown
Received on Mon Jul 14 2014 - 12:30:16 EDT