Tullow’s share estimate up after new find

TULLOW Oil Plc’s share estimate was raised 25% by Sanford C Bernstein & Co, as the explorer found the first oil in French Guiana, a new regional frontier.

Bernstein raised its forecast to 2,000 pence, from 1,600 pence, oil analyst Oswald Clint said in a note yesterday. That’s 43% above the last closing price of 1,395 pence on September 16.

“One of the key ways for an exploration company to deliver value for shareholders is to open up such new basins, given this is when the majority of reserves will be discovered,” Mr Clint wrote.