Tullow Share Price Jumps on Breakthrough Oil Find

on Sep 6, 2013
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iNVEZZ.com Friday, September 6th: Shares in Tullow Oil (LON:TLW) rose almost two percent in early trade in London today, after the UK-based oil and gas company announced a breakthrough discovery off the coast of Norway.

Tullow, whose main activities are in Africa, said in a press release today that its Wisting Central exploration well had made the first ever oil discovery in the Hoop-Maud Basin in the Barents Sea. The drill encountered 50-60 metres of net light oil pay in good quality at a total depth of 905 metres in a water depth of 373 metres.
According to the company’s statement, after gathering more data the Leiv Eiriksson semi-submersible rig will move to drill the deeper and independent Kobbe prospect in the same production licence and will not appraise this shallower discovery.

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Wisting Central is located some 170 kilometres northeast of the Skrugard/Johan Castberg discovery well and 310 kilometres north of Hammerfest. The well is part of licence PL537, in which Tullow has a 20 percent interest. Austria-based OMV (VIE:OMV) is the operator of the well with a 25 percent interest, while Japanese petroleum company Idemitsu (TYO:5019) holds 20 percent and Norway’s Statoil (NYSE:STO) and Petoro have 20 percent and 15 percent respectively.

**New Find Brightens Up Tullow’s Prospects After Setbacks**
Tullow’s exploration director Angus McCoss described the find as “a major frontier light oil discovery for Norway, Tullow Oil and our co-venturers”. McCoss added in the company’s statement: “The Wisting Central wildcat well has opened the Hoop-Maud Basin by proving a new shallow play in the region… We look forward to pursuing the exciting exploration and appraisal follow up arising from this breakthrough oil discovery.”

The development at the Barents Sea oil exploration site is especially welcome news for Tullow given that the UK-based company has hit a number of setbacks in recent months. Earlier this week, Tullow reported that its Buzio-1 exploration well offshore Mozambique had failed to find either oil or gas and has now been plugged and abandoned.
!m[UK Oil&Gas Co Hails New Shallow Off-Norway Play](/uploads/story/5319/thumbs/pic1_inline.jpg)

And in July, the company said a similar well in Mozambique found gas but in insufficient quantities to be commercially viable, while it has also had problems in French Guiana off South America where it has been wildcatting after a major success there last year.
**Tullow Share Price on the Rise**
Shares in Tullow Oil surged immediately after the news of the company’s Norway find. According to AnalystRatingsNetwork data, three research analysts have rated Tullow’s stock with a ‘sell’ rating, nine have assigned a ‘hold’ rating and 16 say ‘buy’, so giving an average ‘hold’ rating with a consensus price target of £1,086.41p.
**As of 09:30 BST buy Tullow shares at £1,052.00p.**
**As of 09:30 BST sell Tullow shares at £1,051.00p.**

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