Tullow Strikes First Oil in Norway After 10 Unsuccessful Wells

Tullow Oil Plc (TLW) discovered its first crude off Norway after at least 10 unsuccessful wells this year.

The company together with partners, including OMV AG (OMV) and Statoil ASA (STL), made the “breakthrough oil discovery” with the Wisting Central exploration well in the Barents Sea, Tullow said today in a statement. The Hoop-Maud Basin find may hold between 60 million barrels and 120 million barrels of recoverable crude, according to the London-based explorer.

“The discovery is a basin-opener with upside potential” of as much as 500 million barrels, Oswald Clint, an analyst at Sanford C. Bernstein & Co., wrote in an e-mailed report.

The discovery follows the $372 million acquisition of Spring Energy AS last year. Globally, the company drilled at least 10 unsuccessful wells this year, including the Augunshaug in Norway last month, Tudor, Pickering, Holt & Co. wrote in an Aug. 29 report. In September, Tullow and Statoil said the Buzio-1 exploration well in Area 2 offshore Mozambique was dry.

Tullow rose 1.7 percent to 1,050 pence by 10:40 a.m. in London trading, paring the decline this year to 17 percent.

Separately, Tullow expanded in Namibia after securing a stake in the EL 0037 permit from Pancontinental Oil & Gas NL (PCL), the Australian company said today in a statement.

To contact the reporters on this story: Eduard Gismatullin in London at egismatullin@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

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