FTSE oil and gas explorer Tullow Oil yesterday announced that it has plugged and abandoned a French Guiana well after failing to strike oil.
The news follows an announcement on 17 April which warned that no hydrocarbons had yet been found in the well, but the company did not expect this to impact productivity elsewhere in the region.
Northern Petroleum is a partner on the project.
Angus McCoss, exploration director of Tullow Oil, commented that despite not encountering hydrocarbons, the miner has “added substantially” to its knowledge of the area by drilling the well and has now moved on to a different part of the region to explore for oil.
“Tullow shares fell heavily last week when the company announced that it failed to find hydrocarbons in the primary reservoir target, so this latest announcement has not had a huge impact,” Tim Hurst-Brown, research analyst at Mirabaud Securities, told City A.M.
“The disappointment of the news was largely already in the price.”
Tullow closed down 0.86 per cent at 1,037p.