Tullow Oil announces find in Ugandan appraisal well
TULLOW Oil had another pleasant surprise for shareholders yesterday when it said that an appraisal well, located in the Butiaba region of Uganda, found more than 40 metres of net oil bearing reservoir in two zones.
It was the third good news story from the Dublin-listed company in as many days, and helped to push up the shares which have already gained this week on the back of news that the explorer had found oil in Ghana and a long-delayed deal in Uganda was to go ahead.
The shares closed up 1.5pc at €15.26 in Dublin last night. They have gained 8.1pc so far this week, adding about €1bn to Tullow's market capitalisation.
The latest discovery was in the Lake Albert Rift Basin which has been the home to many other finds for Tullow in recent years and helped turn the largest company listed on the Irish stock exchange into Africa's largest oil exploration company.
Meanwhile, Ghana's government said that Tullow's discovery of a significant new oil field off the West African country's coast has raised the prospects of more finds.
State-run Ghana National Petroleum has a 10pc interest in the Deepwater Tano licence where Tullow's Owo-1 exploration well discovered a "major new oil field" near Ghana's border with Ivory Coast.
Tullow's announcement "marks a major step for further discoveries", said Thomas Manu, director of exploration and production for GNPC, based about 30km east of the capital, Accra, in the port city of Tema. "The potential of the west coast is still huge" for oil and natural gas, he told Bloomberg.
Production is set to begin at the end of the year at the Jubilee oil field, which straddles the Deepwater Tano licence.