Tullow Oil French Guiana Zaedyus-2 well comes up dry

published 4 December 2012

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.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

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

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.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.