Tullow shares drop after news of drilling delay in Ethiopia

FTSE 100 oil explorer Tullow Oil’s share price plunged 5.4 per cent yesterday following an announcement that the drilling of a well in Ethiopia would be delayed.

Instability issues when drilling the hole have delayed the completion of the project, the company said.

A sidetrack is being drilled to explore the issue and a result from these tests is expected in late May.

While progress of the well in Ethiopia has slowed, the first test on a well in Kenya has been completed and drilling in the first half of May is expected to commence on schedule.

Numis Securities has said that the first signs of a new oil source in Ethiopia’s South Omo Basin are encouraging but further work is required to determine the potential.