A mixed week for Tullow

Tullow Oil has something to be cheerful about, despite a setback in its plan to buy Heritage Oil’s Ugandan assets yesterday. The company has found more good fortune off Ghana’s coast, with the Tweneboa-2 exploratory well yielding a potentially significant find – a combined hydrocarbon column, 6km from the existing Tweneboa-1 well. The 32m of net pay comprised 15m of gas-condensate and 17m of oil.

The potential hydrocarbons beneath west Africa’s seas have been been among the biggest discoveries of the past few years. To refresh your memory, here’s a handy image of wells drilled so far off the Ghanaian and Cote d’Ivorean costs:

Image via Bernstein Research, who are a little excited about the find, dismissing concerns about the high proportion of natural gas condensates:

Indeed, with a liquids component approaching 60% or more and a new net pay of 32m from the originally announced 21m, added to deeper potential which will be tested during 2010, it is clear this is a materially higher value discovery than previously assumed in the market.

Related links:

Ghana’s Tweneboa proved as major oil-gas field (Oil & Gas Journal)
The questions surrounding Tullow vs Eni in Uganda (FT Energy Source, 19/01/10)
A numbers game: The west African oil frontier (FT Energy Source, 16/09/09)

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