Tullow Oil announces well disappointment offshore Norway

Lundin Petroleum, Tullow Oil's partner on the Carlsberg prospect in the Norwegian North Sea, said Thursday that it has plugged and abandoned the wildcat well 7/4-3 after no hydrocarbons were encountered.

Tullow Oil has a 40% stake in the well, which was targeting the Upper Triassic and Upper Cretaceous reservoirs of the Carlsberg prospect.

Lundin said: "The primary exploration target of the well was to prove petroleum in Upper Triassic reservoir rocks (the Skagerrak Formation). The Skagerrak Formation sands were not encountered.

"The second exploration target of the well was to prove petroleum in the Upper Cretaceous chalk reservoir. The reservoir was found at the predicted depth, but was water bearing with no presence of hydrocarbons."

The well is the first exploration well in PL495 and PL495B, it added.

Following the plugging and abandonment of well 7/4-3, the Maersk Guardian rig will move to the Brynhild field to commence the drilling of the development wells.

The costs of the exploration well 7/4-3 and associated license costs will most likely be expensed during the second quarter of 2013.

Tullow's share price fell 3.08% to 1,040p.

NR