Heavyweight City broker UBS today put out some very interesting research on Tullow Oil, which has some implications for two of the market’s smaller and more speculative E&P stocks.

The Guyane Maritime Block has attracted major interest from Shell, Total and Tullow. However two junior oil explorers and minority stakeholders in the block - Northern Petroleum and Wessex Exploration - will feel the impact most if the drilling programme there successful.

For some, the company may have too many moving parts, others would say it has built an unparalleled asset portfolio for a junior E&P company.  Going forward, Northern’s strategy - in its simplest form - takes a two pronged approach, with the priority firmly on the Netherlands and Italy.

This morning the junior oil firm confirmed a new oil discovery in southern England. It laid out plans to sell its British assets last year. Now one of the City’s leading analysts thinks that Northern has strengthened its bargaining position with this excellent news.