Tullow Oil Plugs, Abandons Tultule-1 Well in Ethiopia

By Tapan Panchal

LONDON--Oil and gas exploration group Tullow Oil PLC (TLW.LN) said Monday that the Tultule-1 wildcat well in the South Omo block, onshore Ethiopia, will be plugged and abandoned as a dry hole.

The Tultule-1 well reached a total depth of 2,101 meters and was targeting a reservoir section similar to the sands drilled in the nearby Sabisa-1 well, where oil shows were encountered, but these sands were not penetrated in Tultule-1.

The company will now analyze results of the Sabisa-1 and the Tultule-1 wells to determine the future exploration campaign for the area.

The company said the OGEC rig will now move to the Chew Bahir basin in Ethiopia to drill the Shimela prospect in the eastern portion of the South Omo block. The well is expected to spud at the end of the first quarter of 2014.

Tullow is the operator of the Tultule-1 well with a 50% interest along with partners Africa Oil, with 30% interest, and Marathon, with 20% interest.

The company also said that the Ewoi-1 well in Block 10BB, Kenya, is expected to spud by the end of 2013.

Shares of Tullow Oil on Friday closed at 899 pence, valuing the company at 8.19 billion pounds ($13.38 billion).

Write to Tapan Panchal at [e-mail]

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