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Tullow Oil’s Namibia exploration well fails to find commercial hydrocarbons

"The Cormorant-1 frontier exploration well was a bold attempt to open a new oil play in this area of Tullow's offshore Namibia acreage,” said Angus McCoss

oil and gas operations
The primary target was found to be water bearing

Tullow Oil plc’s (LON:TLW) exploration programme offshore Namibia has got off to a negative start, with the Cormorant-1 failing to find commercial volumes of hydrocarbons.

The company, in a statement, revealed that the well was sunk to 3,855 metres and encountered its primary target but it was found to be water bearing.  ‘Wet gas’ signatures, a potential indicator of an oil presence, were observed in an overlying shale section.

"The Cormorant-1 frontier exploration well was a bold attempt to open a new oil play in this area of Tullow's offshore Namibia acreage,” said Angus McCoss, Tullow exploration director.

READ: Chariot Oil & Gas looks ahead to Namibia opportunity

“Gas readings while drilling continue to support the concept that there is a working oil system in the area. As a result, following the conclusion of operations, we will analyse the data gathered before deciding on any future activity.

“While this is not the outcome that we had hoped for, the efficiency of our drilling and our risk management processes resulted in low financial exposure to this well."

Tullow owns a 35% interest in the PEL-37 licence which was host to Cormorant-1, and, after a farm-out deal agreed in 2017 the company anticipates its share of the costs will be around US$5mln.

Quick facts: Tullow Oil plc

Price: 207.4 GBX

LSE:TLW
Market: LSE
Market Cap: £2.91 billion
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