Tullow disappoints again after abandoning well in French Guiana

Tullow Oil said on Tuesday that it has had to abandon a well offshore French Guiana, the latest in a string of disappointing operational updates from the FTSE 100-listed oil explorer.

Tullow Oil said on Tuesday that it has had to abandon a well offshore French Guiana, the latest in a string of disappointing operational updates from the FTSE 100-listed oil explorer.

The company said that the Priodontes-1 well was drilled to a total depth of 6,138m in water depths of 1,750m but failed to encounter any hydrocarbons in the main target reservoir.

The well has now been plugged and abandoned, the group said.

The rig that was working on the well, the Stena Ice Max, is to now move to the site of the Cebus exploration well which is due to spud within the next two weeks.

Tullow holds a 27.5% interest in the Guyana Maritime licence were Priodontes is located, Royal Dutch Shell owns 45%, Total owns 25% while Northern Petroluem and Wessex Exploration jointly own 2.5%.

"Although this well did not encounter significant hydrocarbons, we have added substantially to our knowledge of the formations in this frontier exploration area," said Exploration Director Angus McCoss.

"The campaign now moves to the Cebus prospect which is located in a separate fan to Zaedyus and Priodontes. This means that there is limited read-across for Cebus from the wells drilled thus far."

Nevertheless, McCoss said that all wells have demonstrated that the Cingulata fan system has been charged with oil and Cebus is an "excellent prospect". He expects a result later this year.

Tullow's share price has dropped by nearly 16% over the past month due to a declining oil price and a series of disappointing updates on two of its key exploration wells - Sabisa in Ethiopia and Priodontes in French Guinea.

In an update last week, the company said that Sabisa was "technically challenging" and now requires a side-track to redrill due to "instability issues".

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

Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020
Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
IAG's share price is ready for take-off - here's how to play it
Trading

IAG's share price is ready for take-off - here's how to play it

The owner of British Airways has had a turbulent year, but is now worth a punt. Matthew Partridge explains the best way to play it.
8 Sep 2020