Tullow Announces Two Successful Finds

PUBLISHED: 16 Mar 2012 @ 15:21 | Comments (0) | More info about Lou Gutheil

Tullow Oil (LSE:TLW) released a statement at noon today announcing that it has found water-bearing reservoirs with oil shows at two of its exploratory wells. Tullow is trying to add reserves after successfully unlocking nearly 4 billion barrels of oil in new provinces in Uganda, Ghana, and French Guiana. Share prices have been volatile today, rising and falling modestly on trading of 2.3 million shares. At 1:56 pm the share price was at 1,506p.

The Mercury-2 Well

Mercury-2 is located off the coast of Sierra Leone, approximately 12 kilometres northwest of Mercury-1, which is an oil-producing well. Tullow has a 20% stake in Mercury-2, partnering with Repsol and the Operator and majority stakeholder, Anadarko. The discovery was made at a depth under 1,812 metres of water. The drilling had been commenced in a location where “extensive 3D seismic coverage indicated a high probability of finding thick reservoir quality sandstones.

The Kosrou-1 Well

Tullow has a 22% interest in the Kosrou-1 well off the coast of Côte d’Ivoire. It is partnered with Petroci, Thani, and Operator Anadarka, which owns a 50% stake in the operation. This well, drilled by a semi-submersible to a depth of 5,241 metres, under 2,275 metres of water, targeted a channel system that intersects with 90 metres of reservoir quality sandstones and over 120 metres in total.

Corporate Comments

Tullow Exploration Director, Angus McCoss cited the discoveries as “significant”, saying that “The existence of thick sandstone fairways and a working hydrocarbon system mean(s) that our West African Transform Margin acreage remains highly prospective. The well data will now be integrated into our regional models to improve our chances of making a hub-class discovery with the ongoing campaign which includes the Strontium-1 well in Liberia and the Paon-1 well in Côte d’Ivoire.”

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