Tullow makes major oil find

TULLOW Oil has branded its Owo well, off the coast of Ghana, as forming part of “a major new oil field” following another significant find in the area.

Two months ago, the Irish-founded exploration company announced the discovery of “a significant column of excellent quality light oil” at its Owo-1 well, which is located approximately six kilometres from its existing Tweneboa field, and forms part of the Deepwater Tano licence (of which Tullow controls just under 50%).

A subsequent enlargement of the appraisal drilling area, around Owo, has now encountered another 16 metres of net oil pay, atop the initial 53 metre find.

“Results of drilling, wireline logs and samples of reservoir fluids confirm that Owo is a major new oil field,” the company explained yesterday.

Significant gas activity was also found and the company said that following the completion of logging operations, Owo-1 will be suspended for future use in appraisal and development.

Tullow recently reported a 150% year-on-year jump in pre-tax profit and an 11% rise in revenue for the first half of the year.

Analyst reaction was positive, on the back of yesterday’s update, with Davy Stockbrokers suggesting that it outlines the high quality nature of Tullow’s Ghana acreage.

Meanwhile, yesterday also saw additional good news from another Irish exploration company.

Ahead of its AGM on Thursday, Limerick-headquartered Circle Oil said its operational momentum and work programmes in Egypt are proceeding “in line with expectations” after its latest positive operational update.