Tullow stock hit as well in Ghana fails to strike oil

Tullow Oil yesterday said a well offshore Ghana had failed to find oil, prompting one broker to downgrade the British-based explorer and hitting its shares.

In a statement to the London Stock Exchange, Tullow yesterday said its Onyina-1 exploration well in the Deepwater Tano licence offshore Ghana had encountered water bearing reservoirs.

Exploration director Angus McCross said: “The lack of hydrocarbons at this location highlights the high risks of charging and trapping oil in this secondary play.”

The news from Tullow – which is headed by chief executive Aidan Heavey – comes after a tax dispute has delayed the pumping of oil from fields in Uganda. “This result is a blow to sentiment... the rating now looks stretched,”
Richard Rose, oil analyst at Oriel Securities, said in a note in which he downgraded the stock to “reduce” from “hold”.

US-based Anadarko Petroleum has an 18 per cent interest in the well.

Tullow shares fell 3 per cent in early trading yesterday, against a 0.3 per cent rise in the STOXX Europe 600 Oil and Gas index. The stock finished 2 per cent lower at 1,227p, the lowest since 6 September.