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.

Most Popular

The MoneyWeek Podcast: Asia, financial repression and the nature of capitalism
Economy

The MoneyWeek Podcast: Asia, financial repression and the nature of capitalism

Russell Napier talks to Merryn about financial repression – or "stealing money from old people slowly" – plus how Asian capitalism is taking over in t…
16 Jul 2021
Three companies that are reaping the rewards of investment
Share tips

Three companies that are reaping the rewards of investment

Professional investor Edward Wielechowski of the Odyssean Investment Trust highlights three stocks that have have invested well – and are able to deal…
19 Jul 2021
The future belongs to emerging markets – three EM stocks to buy now
Share tips

The future belongs to emerging markets – three EM stocks to buy now

Professional investor Carlos von Hardenberg of Mobius Capital Partners picks three of his favourite emerging-market stocks.
5 Jul 2021