24th Sep 2018 08:31
LONDON (Alliance News) - Tullow Oil PLC said Monday that it will plug and abandon the Cormorant-1 exploration well in the PEL-37 licence, offshore Namibia, as it encountered non-commercial hydrocarbons.
The well was drilled to a total depth of 3,855 metres and encountered water bearing sandstones, the oil explorer said. It added that geological data gained from the well will provide insights into the prospectivity of the company's Namibian acreage in PEL-37 and PEL-30.
"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," Exploration Director Angus McCoss said.
Tullow's net expenditure on the Cormorant-1 well is expected to be around USD5 million. The company operates the PEL-37 licence with 35% equity interest and is partnered by ONGC Videsh Ltd with 30% stake, Pancontinental Oil & Gas with 30% holding and Paragon Oil & Gas with 5% interest.
Shares in Tullow were trading 1.7% higher at 251.10 pence each on Monday morning.
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