Tullow rises 12% on latest drill figures

SHARES in Tullow Oil enjoyed another strong day’s trading yesterday — rising by more than 12%, or 89c, to €8.20 — on the back of latest estimates that the company’s Mahogany well off the coast of Ghana could have an oil capacity of up to 20% more than originally anticipated.

The Irish exploration company said that latest appraisal drills at its Mahogany-3 well had located “light oil columns”, which illustrated both an extension to the overall Jubilee oil field in the area and a deeper well than originally forecast. Drilling in the so-called Mahogany Deep prospect — located underneath the Mahogany-3 well — showed 17 metres of “good quality oil bearing reservoir sandstones at levels significantly deeper than the oil water contacts previously intersected.”

The company added that the latest success “opens up further potential in the region and is the subject of ongoing evaluation”.