Monday 12 August 2019 9:39 am

Shares rise as Tullow Oil sees great start to Guyana drilling campaign

Tullow Oil today hailed an “excellent start” to a South American drilling campaign as the company made a major discovery off the coast of Guyana.

The discovery shows that the Jethro-1 well will likely hold over 100m barrels of oil, chief executive PaulMcDade said. The discovery is ahead of expectations.

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“This substantial and high value oil discovery in Guyana is an outcome of the significant technical and commercial focus which has underpinned the reset of our exploration portfolio,” McDade said.

The discovery mean that the Orinduik licence is much less risky, the company said. The licence includes another well which Tullow expects to start drilling later this month.

The discovery was at Jethro-1, a 4,400 metre deep well in 1,350 metres of water.

Read more: Tullow Oil promises dividend as it records first profit in five years

Tullow holds a 60 per cent stake in Orinduik, with Total and Eco Atlantic owning the rest.

McDade said: “It is an excellent start to our drilling campaign in the highly prolific Guyana oil province. We look forward to drilling both the Joe and Carapa prospects in our 2019 drilling campaign and the material follow-up exploration potential in both the Orinduik and Kanuku licences.”

Shares in the company were up nearly 17 per cent this morning. while Eco Atlantic boomed by 89 per cent.