Tullow: Potential for more oil finds

TULLOW Oil has indicated that there is still further potential for fresh oil discoveries at its oil well at its Deepwater Tano licence off the coast of Ghana.

This comes following the discovery of more oil bearing sands as a result of deeper drilling at the site, which is 49.95% owned by the Irish company.

The Dublin and London-quoted exploration company said that its latest drilling round encountered four extra metres of highly pressurised oil bearing sands.

It follows on from this month’s earlier announcement of a “significant” and “outstanding” find in the same well, covering a depth of 21 metres.

“Tweneboa-1 is a significant light hydrocarbon discovery which has extended the jubilee play westwards and has identified oil in a deeper sand pointing to scope for further play development. We look forward to exploring these multiple targets offshore from Ghana and pursuing these plays across the rest of our extensive equatorial Atlantic acreage position,” Tullow’s exploration director, Angus McCoss said yesterday.

In addition, Tullow said that drilling has also encountered oil bearing sands at the Karuka-2 exploration well at the Vundu prospect in Uganda.

On that, Mr McCoss said: “The Karuka-2 well has confirmed our existing understanding of the escarpment play. For the remainder of 2009 our Butiaba programme will focus on the prolific Victoria Nile Delta play and look to replicate and extend the successful reservoir cascades encountered during our 2008 drilling programme.”

Again, earlier this month, Tullow reported record full-year results for 2008 — featuring a near €200m rise in pre-tax profits to €322.4m — which the company’s management said covered its best year ever.

Tullow’s share price in Dublin, was up by 10c at €8.89 yesterday.