FTSE 100-listed Tullow Oil yesterday said it had plugged and abandoned an exploration well in offshore Mozambique, after failing to discover oil.
Despite the disappointing news, the oil and gas explorer’s share price rose yesterday and closed one per cent higher at £10.18.
Tim Hurst-Brown, analyst at Mirabaud Securities, told City A.M. this was surprising and most likely a reflection of the wider stock market, which made gains yesterday.
This is the second well that Tullow has drilled in the area, the first of which struck oil.
“We will now combine the data from both offshore Mozambique wells with our extensive seismic in this licence area and determine our next steps,” said exploration director Angus McCoss.