A fresh blow for Tullow Oil as it abandons dry well off Norway

 
Suzie Neuwirth
TULLOW Oil, the FTSE 100-listed oil and gas explorer, yesterday said that it had failed to find oil in an exploration well located off Norway.

“[The well,] which was targeting the Gotama prospect, offshore Norway, did not encounter reservoir quality sandstones in the Upper Jurassic main target,” said Tullow in a statement. “The well encountered reservoir quality sandstones in the secondary targets but these intervals are water wet.”

The well will now be plugged and abandoned.

Tullow has hit a number of dry wells over the past 18 months, notably in Ethopia, French Guiana and Kenya.

But earlier this year chief executive Aidan Heavey shrugged off speculation that the firm’s lack of exploration success made it a takeover target.

Tullow sold off most of its stakes in two North Sea gas fields to Faroe Petroleum earlier this month for $75.6m (£44.8m) and is marketing its remaining gas assets, as it looks to focus on making oil discoveries.

Shares closed 0.7 per cent higher yesterday despite the news.

“Although the announcement is disappointing, the value ascribed to the well by the market was small,” said Killik & Co research.