Tullow Drops Most in Three Months on Dry Wells: London Mover

Tullow Oil Plc slumped the most in three months in London after failing to find commercial quantities of crude or gas at two wells off Mozambique and French Guiana.

Tullow slid 6.6 percent to 1,041 pence in the biggest one-day drop since April 17. It was the worst performer on the benchmark FTSE 100 Index.

The Cachalote well, where Statoil ASA and Inpex Corp. are partners, in the Ibo High area off Mozambique discovered a “gas bearing reservoir” that “is unlikely to be commercial on a standalone basis,” Tullow said today in a statement.

The GM-ES-4 well targeting the Cebus prospect off French Guiana revealed “no indications of hydrocarbons,” Tullow said in the statement. Royal Dutch Shell Plc, Total SA and Northpet Investments Ltd., a company jointly owned by Northern Petroleum Plc and Wessex Exploration Plc, are partners in the well.

Wessex fell 31 percent and Northern Petroleum retreated 5.1 percent in London.

“Cachalote has found the wettest gas yet in Mozambique” and “we believe the prize in Mozambique has to remain an oil focus,” Oswald Clint, a London-based analyst at Sanford C. Bernstein & Co., wrote in an e-mail report.

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE