Tullow Oil celebrates oil well find in Norway
TULLOW Oil says it has made a breakthrough discovery off the coast of Norway.
The oil and gas mining company said its Wisting Central exploration well in offshore Norway has become the first ever oil discovery in the Hoop-Maud Basin in the Barents Sea. It is located approximately 310km north of Hammerfest in Norway.
The well has shown 50 to 60 metres of “net light oil pay”, which means the vertical height of the productive portion of a reservoir.
The news is especially welcome given that Tullow has hit a number of setbacks in recent months.
Earlier this week the company said its Buzio-1 exploration well offshore Mozambique did not find either oil or gas and has now been plugged and abandoned.
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.
"This is a major frontier light oil discovery for Norway, Tullow Oil and our coventurers” said Tullow’s exploration director Angus McCoss.
“The Wisting Central wildcat well has opened the Hoop-Maud Basin by proving a new shallow play in the region. This discovery also demonstrates the effectiveness of leading edge exploration techniques, pioneered by Tullow's Norwegian exploration team, that combine shallow seismic and electromagnetic survey data in the search for oil."
"We look forward to pursuing the exciting exploration and appraisal follow up arising from this breakthrough oil discovery."
The Wisting Central discovery is located in license PL537 in which Tullow has a 20pc interest. OMV is the operator with a 25pc interest while Idemitsu (20pc), Statoil (15pc) and Petoro (20pc) are also partners.
Tullow’s share price rose as much as 2.4pc in early trading following the news, leading gains on the Stoxx 600 Oil & Gas Index.