Tullow shares up after Greenland venture
SHARES in Tullow Oil climbed yesterday, after the company moved away from its traditional base in Africa and bought into a licence off Greenland.
In a statement, the Irish-led company said the Greenland government had signed off on a deal for Tullow to take a 40pc stake in a licence in Baffin Bay off southwest Greenland, close to Canada.
The "Tooq licence", as it is known, is operated by Maersk Oil. The Danish exploration firm holds 47.5pc of the licence, while the Greenland authorities own the remaining 12.5pc through the state oil firm Nunaoil.
The licence is in the very early stages of development and is some years away from producing oil if it even exists.
A seismic evaluation of the 11,000 square kilometre area will now be completed and then a decision will be made on whether to drill an exploration well at the site.
The licence is the first time Tullow has bought into the Greenland area and is notable because it is so far away from the fields along the west coast of Africa which have proved so lucrative for the company.
The firm, however, said the geology in the area was the same as the "Atlantic Margin" play along the African coast and the Caribbean, which have transformed Tullow into the multibillion euro company it is today.
Tullow's exploration director Angus McCoss said it was "very pleased" to have done the deal to get into region.
"We are very pleased to be partnering with Maersk Oil and Nunaoil in this unexplored and highly prospective province.
"Our complementary skills and expertise will allow us to evaluate fully the potential of it in the initial seismic phase," he said.
Meanwhile, Ormonde Mining said its joint venture partner at a site in Spain had identified a new target for gold exploration.
Aurum Mining claimed it had found a major new gold target at the Pino de Oro permit in northwest Spain.
Tullow closed the day up 0.8pc in London at 1,415 pence and flat in Dublin. Ormonde closed the day flat in London, but up 12pc in Dublin.