Tullow Oil share price: Explorer strikes oil offshore Norway

on Jul 3, 2014
Updated: Apr 9, 2020
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iNVEZZ.com, Thursday, July 3: Tullow Oil Plc (LON:TLW) and its partners have struck oil offshore Norway, the FTSE 100 company has said. The news comes on the heels of Tullow’s trading update which yesterday revealed that the company had booked a $415 million (£242 million) write-off for the first half of the year following several exploration disappointments.

Tullow Oil’s share price has added 0.65 percent to 855.00p in London so far today.
**Hanssen oil discovery**
Tullow Oil announced in a statement this morning that the Hanssen wildcat well in the Barents Sea offshore Hammerfest had encountered a 20-25 metre oil bearing sandstone with good reservoir properties in the Stø Formation.
The Hanssen well was drilled about seven kilometres northwest of the company’s breakthrough Wisting Central oil discovery. (Tullow Share Price Jumps on Breakthrough Oil Find) Tullow noted in today’s statement that the preliminary volume estimates of up to 50 million barrels of recoverable oil from the new discovery confirmed the potential of the Wisting cluster.

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“This success is an important follow-up to our Wisting Central oil discovery in September last year which opened up the Hoop area,” Tullow’s exploration director Angus McCoss commented in the statement, adding that the company and its partners were preparing to drill the Hassel and Bjaaland wells in the eastern part of the Wisting cluster next year.

Tullow holds 20 percent in the production licence containing the Hanssen discovery, while OMV’s (VIE:OMV) Norwegian unit is the operator of the prospect with a 25 percent stake. Japan’s Idemitsu and Norway-backed Petoro each have a 20 percent stake, while Statoil (OSL:STL) holds the remaining 15 percent.

**Exploration programme**
Today’s drilling results follow Tullow’s trading update released yesterday, ahead of the group’s first-half results due out at the end of the month. (Tullow Oil share price: Explorer writes off $415m of exploration costs) The FTSE 100 explorer forecast a write-off of $415 million for the first half following exploration setbacks in Mauritania, Ethiopia and Norway but maintained its full-year production guidance and reassured investors that it was “extremely well-funded”.

Tullow also updated investors on its exploration programme, noting that it expected results from a well onshore Gabon in the next few weeks. The company said that four basins in Kenya and Ethiopia were being tested during the second half of the current year, with five further basins to be tested next year.
**As of 10:24 BST, buy Tullow Oil shares at 858.00p.**
**As of 10:24 BST, sell Tullow Oil shares at 857.00p.**

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