Tullow Oil French Guiana Zaedyus-2 well comes up dry

Commercial hydrocarbons have not been found at the Zaedyus-2 appraisal well in offshore French Guiana after Tullow Oil completed drilling but the group is confident the French Guiana block remains "highly prospective".

The Zaedyus-2 well, which was drilled 5km up-dip from the Zaedyus 1 well, encountered 85 metres of reservoir quality sands with oil shows but no commercial hydrocarbons.

Tullow Oil pointed out that the reservoirs at this location were not connected with Zaedyus-1. Information obtained from the two wells using 3D seismic data suggests the reservoirs are geologically separated from Zaedyus-1.

Start your trial of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

As the Zaedyus-2 well is up-dip and disconnected from Zaedyus-1, the Group said the result had "no bearing on the bulk of the undrilled prospectivity which is located downdip of Zaedyus-1"

Angus McCoss, exploration director at Tullow Oil, said: "While the Zaedyus-2 well has not proved an up-dip extension of the Zaedyus discovery towards the apex of the fan, the well has provided very valuable data for the exploration and appraisal strategy of the Cingulata fan system going forward."

"The French Guiana block remains highly prospective, particularly down-dip and still offers excellent potential for multiple exploration successes. These early lessons learned by the joint venture are being incorporated into our ongoing well campaign," he added.

Tullow has a 27.5% stake in the Guyane Maritame licence and is partnered by Shell, which is the operator and holds a 45% stake, Total and Northpet, a company owned 50% by Northern Petroleum PLC and 50% by Wessex Exploration.

The share price fell 5.03% to 1,302 pence by 11.58 GMT.