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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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.
-
Renewable investing: who is paying for the green revolution?Investors in renewables have not been rewarded, says Bruce Packard. Will they fund the government’s plans?
-
UK house prices rose 4.6% last year – where did property prices grow most?House prices increased by 4.6% in 2024, giving an average property price of £268,000. Where did property prices grow the most and will they continue to rise this year?
