Monday 28 May 2018

Tullow find boosts share price

Peter Flanagan

TULLOW Oil shares spiked yesterday after the company said it had discovered "a major light oil field" off the west coast of Africa.

In a statement, Tullow said it had encountered oil in "excellent quality" at the Enyenra-2A appraisal well in its Tano licence off the coast of Ghana.

Drilling confirmed the oil struck at Enyenra is in communication with another well, Owo-1 that had been drilled earlier, confirming the Owo oil discovery is a major oil field.

As well as hitting two channels for oil, the well also hit a deeper fan of gas condensate. Once testing is complete, the well will be suspended for future use.

Tullow owns 49.95pc of the deepwater Tano licence.

Tullow exploration director Angus McCoss described the well as "an exceptional result".

"This represents a major step forward in the appraisal of the Enyenra-Tweneboa area and is highly encouraging for our target to declare commerciality later this year."

Davy stockbroker Job Langbroek said: "The well was a major step out to the south and substantially de-risks the play."

Tullow closed up 4pc in Dublin at €17.12.

Irish Independent

Business Newsletter

Read the leading stories from the world of Business.

Also in Business