Tullow shares up despite dry wells
SHARES in Tullow Oil rose yesterday despite another dry hole in its drilling programme.
In a statement, the company said its Buzio-1 exploration well offshore Mozambique did not find either oil or gas and it had now been plugged and abandoned.
The failure to find hydrocarbons at Buzio-1 is the latest exploration well that has come up short for Tullow. In July, it said a similar well in Mozambique did not find gas in large enough quantities for it to be commercially viable, while it has also had problems in French Guiana off South America where it has been wildcatting after a major success there last year.
The Buzio-1 well is the second deepwater exploration well drilled in the area, Tullow said.
Company exploration director Angus McCoss, claimed that despite the failure, the drilling had provided "valuable" geological information on the area.
"Having encountered hydrocarbons with the Cachalote-1 well, we have acquired valuable information from the Buzio-1 dry hole.
"We will now combine the data from both offshore Mozambique wells with our extensive seismic (information) in this licence area and determine our next steps," he said.
Despite the failure, shares in Tullow jumped as much as 3pc in London before closing the day up 1.2pc at 1,019 pence.