Sam Wahab, SP Angel’s oil and gas analyst talks to Proactive about the prospects for Eco (Atlantic), Tullow Oil, Hurricane Energy and Union Jack Oil.
Tullow (LON:TLW) needs to get back to explorations, which is what it does best says Wahab.
Its cashflow needs also means it has to beef up the value of assets such as Orinduik off the coast of Guyana and that is good news for partner Eco (Atlantic) Oil & Gas (LON:ECO).
Eco has been hugely oversold on the back of the discoveries so far being heavy oil, he says.
There are an estimated 4bn barrels of oil there, while the layer that contains the lighter oil has still to be drilled.
Hurricane Energy PLC (LON:HUR) has also been over-harshly punished for the drill result from Warwick West.
Lancaster has always been the key for Hurricane says Wahab and that is performing ‘exceptionally well’.
This is one the largest onshore discoveries ever made in the UK and following a recent round of fund raises, all of the partners are funded for its development.