Tullow: French Guiana oil exploration well will be drilled deeper
BY SELINA WILLIAMS
LONDON -- Tullow Oil said that an exploration well in a prospect offshore French Guiana hasn' t found significant hydrocarbons so far due to a trap-specific issue that has no implication for oil and gas prospectivity elsewhere in the block.
The announcement came after shares in Tullow Oil fell almost 14% after Wessex Exploration and Northern Petroleum, Tullow' s partners in the project, said the Priodontes-1 well had not encountered significant shows of oil and gas.
Tullow said the announcement from Northern Petroleum had been issued without approval of the partners in the project or operator Shell. Shell declined to comment.
Earlier this week, Tullow' s shares took a battering after the company reported a delay at its Sabisa exploration well in Ethiopia which has proved to be technically challenging and will require some re-drilling.
A note from Bernstein analysts said the fact that one well in French Guiana failed to hit hydrocarbons wasn' t an indicator that the whole basin was a failure and the share price reaction was overdone.
"We see little read-across from the Priodontes discovery to further prospectivity in French Guiana" Bernstein said.
Tullow added that the fact that the Priodontes-1 well in French Guiana had intersected what Wessex and Northern described as a 50 m gross section of oil stained sands in the lower part of the Bradypus fan was positive.
"The shows encountered in the Bradypus fan underline the presence of a working oil charge system" Tullow said.
The Priodontes-1 well will now be drilled deeper to 6,483 m to target additional formations, Tullow said.
The Priodontes-1 exploration well is the second well of a four well exploration drilling campaign that commenced in 2012 to follow up the oil discovery at GM-ES-1 in 2011.
Dow Jones Newswires