Tullow Oil plc (LON:TLW) has revealed that the Araku-1 exploration well offshore Suriname was unsuccessful.
No significant reservoir quality rocks were encountered in the well, Tullow told investors, although there was some evidence of gas condensate. The well is now being plugged and abandoned.
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It was a wildcat exploration well in a frontier area, and as such the company highlighted that the well has provided important geological insights which, alongside its high quality 3D seismic data, will help future exploration in deeper plays.
"The Araku-1 well was an ambitious wildcat exploration well that was drilled efficiently and at very low cost,” said Angus McCoss, Tullow exploration director.
“While we have not made a commercial discovery, we are encouraged by recovering gas condensate from the well and remain fully committed to exploration in Suriname and Guyana.
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“Tullow continues to pursue the considerable prospectivity and potential of this large licence and the wider region. We will now consider our next steps with our joint venture partners."
Tullow is the operator of the exploration project with a 30% stake, alongside partners Statoil and Noble Energy which own 50% and 20% respectively.
In late afternoon trading, Tullow shares on the FTSE 250 index were 2.6% lower at 177.6p.
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