Tullow Oil share price: Explorer reveals drilling disappointment in Ethiopia

on May 23, 2014
Updated: Apr 9, 2020

iNVEZZ.com, Friday, May 23: Africa-focused explorer Tullow Oil (LON:TLW) today reported that a well drilled onshore Ethiopia had encountered water bearing reservoirs. The news came after earlier this month the company and its partner Africa Oil posted mixed results from two wells in neighbouring Kenya.

Tullow Oil’s share price, which has lost some 20 percent over the past year, closed 0.77 percent higher at 851.50p in London yesterday.
**Ethiopia drilling results**
Tullow Oil announced today in a statement that its Shimela-1 well in the South Omo Block onshore Ethiopia had encountered water bearing reservoirs. The frontier wildcat well, which was drilled to test a prospect in a north-western sub-basin of the Chew Bahir basin, encountered lacustrine and volcanic rocks including almost 100 metres of net sandstone reservoir within siltstones and claystones.

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The company reported that the Exalo 205 rig which had drilled the well would be moved to proceed with drilling in a separate sub-basin in the south-eastern corner of the Chew Bahir basin.
Commenting on today’s drilling result, Tullow Oil’s director Angus McCoss noted that although the well had “only found traces of thermogenic gas, it has provided key data to continue to build our understanding of the north-western part of the Chew Bahir basin”.

McCoss also reassured investors that the prospectivity of the well targeting an independent petroleum system in the south-eastern sub-basin was not affected by the result.
Tullow is the operator of the South Omo Block with a 50 percent stake and is partnered by Africa Oil with a 30 percent interest and Marathon Oil Ethiopia which holds the balance.

Today’s result follows an announcement earlier this month in which Tullow and Africa Oil reported mixed drilling results from two wells onshore northern Kenya. (Tullow Oil share price: Group unveils Kenya drilling results)

In April, Tullow unveiled disappointing drilling results from its campaign in Mauritania where it abandoned a second well. (Tullow Oil share price drops on disappointing Mauritania results)
**Analysts on Tullow Oil**
As of May 16, the consensus forecast amongst 41 polled investment analysts covering Tullow Oil for the Financial Times advises that the company will outperform the market.
Analyst Ratings Network reports that the Africa-focused oil explorer currently has a consensus ‘buy’ rating and an average price target of 1,112.31p.
**On May 22, buy Tullow Oil shares at 852.00p.**
**On May 22, sell Tullow Oil shares at 851.50p.**


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