Tullow Oil shares fell 3.3 percent on Tuesday after the energy explorer with recent discoveries in east Africa said it had abandoned and sealed a dry well in Ethiopia.
CITY A.M. quoted the FTSE 100-listed explorer saying it would move analyze the results of both the Tultule-1 well and the neighboring Sabisa well in the South Omo block, to determine the future exploration plan for the area.
“This is a disappointing well result from the point of view that it hasn’t proved beyond doubt the commercial viability of the Omo basin; however, this is only the second well of the programme in this basin,” said Canaccord Genuity.
Tullow is the operator of the Tultule-1 well with a 50 per cent interest, along with partners Africa Oil and Marathon.
The Irish-founded mining company added that the rig used on that site will be moved to a different area of the country in 2014 to drill another well “where new seismic [survey information] has delineated a number of exciting new prospects.”
The company said Monday it found some natural gas deposits, which it says proves the presence of a hydrocarbon source in the region UPI reported.