FTSE 100-listed Tullow Oil’s share price slumped over three per cent yesterday, after the energy explorer said it would plug and abandon a dry well in Ethiopia.
The company said it would now analyse the results of both the Tultule-1 well and the neighbouring Sabisa well in the South Omo block, to determine the future exploration plan for the area.
“This is a disappointing well result from the point of view that it hasn’t proved beyond doubt the commercial viability of the Omo basin; however, this is only the second well of the programme in this basin,” said Canaccord Genuity.
Tullow is the operator of the Tultule-1 well with a 50 per cent interest, along with partners Africa Oil and Marathon.
Shares closed down 3.3 per cent.