Tullow evaluating options after suspending Kenyan well

FTSE 100-listed oil and gas producer Tullow has suspended its Paipai-1 exploration well in Kenya after struggling to bring oil to the surface, the company said on Friday morning.

FTSE 100-listed oil and gas producer Tullow has suspended its Paipai-1 exploration well in Kenya after struggling to bring oil to the surface, the company said on Friday morning.

The well, located in the Marsabit County of Kenya Block 10A, was drilled to evaluated a large structural closure of Cretaceous age in the Anze Basin.

However, the light hydrocarbons encountered in the well were not able to be recovered to the surface due to a thick layer of rock which formed an "effective regional top seal".

The firm said it has temporarily suspended the well and is considering its options.

Tullow owns a 50% operated interest in the well, with Africa Oil holding 30% and Afren holding the remaining 20%.

"As we were unable to recover the hydrocarbons encountered whilst drilling, the well needs additional assessment. We will now carefully evaluate all the data and review the available technical options, which include possible flow testing and reservoir stimulation," said Tullow's Exploration Director Angus McCoss.

"From a frontier exploration perspective, we can already conclude that this part of the Anza Basin has the makings of a viable Cretaceous hydrocarbon play. Consequently, we will also be reviewing the follow-up Cretaceous prospects," he said.

Meanwhile, McCoss added that Tullow's exploration activities are" accelerating" in the core oil campaign in the Tertiary rift basins of Kenya and Ethiopia.

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

The rising dollar is proving bad news for most other assets – will it last?
Investment strategy

The rising dollar is proving bad news for most other assets – will it last?

Precious metals, stocks and pretty much every other asset has taken a tumble as the US dollar strengthens. Dominic Frisby looks at how long this trend…
23 Sep 2020
The electric-car bubble could get an awful lot bigger from here
Renewables

The electric-car bubble could get an awful lot bigger from here

The switch to electric cars is driving a huge investment bubble. But that’s not necessarily a bad thing, says John Stepek. Fortunes will be made and l…
24 Sep 2020
Can Rishi Sunak’s winter plan save the UK economy?
UK Economy

Can Rishi Sunak’s winter plan save the UK economy?

With his Winter Economic Plan, chancellor Rishi Sunak is hoping to support the economy through the dark months ahead as restrictions tighten again. Jo…
25 Sep 2020