Tullow makes two finds in Kenya
TULLOW Oil has reported two new discoveries in Kenya in a region which it said has potential for a billion barrels of oil.
The Irish-founded company reported two more discoveries in northern Kenya on top of five known finds, nearly doubling its Kenyan resource estimates to more than 600 million barrels of oil.
"The results to date are extremely positive for achieving a commercial development from the discoveries made in this basin," said chief operating officer Paul McDade.
Tullow said it was now working with partner Africa Oil and the Kenyan government to start developing the finds within three years and had started design work on pipelines to an export terminal.
Tullow, which works with France's Total and China's Cnooc to develop fields in neighbouring Uganda, has plans to combine oil exports from the two countries through one pipeline network.
Brokers across the UK and Ireland responded positively. Goodbody stockbrokers maintains its 'buy' recommendation on the stock. "We believe this is further evidence of the breadth of company's exploration portfolio, which comes with a well-funded balance sheet," said analysts at Barclays.
The company's share price was up by 0.4pc to £8.60 (€10.34) in London yesterday afternoon after two days of losses. It jumped by more than 10pc last Thursday and Friday amid rumours of a Statoil takeover.
In a separate trading statement, Tullow said that 2013 revenues would come in at $2.6bn, up 11pc on the year before. Gross profits should hit $1.4bn.
It will announce full-year results on February 12.