Tullow Oil Finds 2nd Well Site In Orinduik Offshore Guyana
Zacks Investment Research | Mar 28, 2019 10:51PM ET
Tullow Oil (LON:TLW) plc (OTC:TUWOY) , along with its partners in the Orinduik oil and gas field that is located offshore Guyana, recently chose the location for a second well in the field, as part of its 2019 drilling program. The company has approved the drilling budget for the prospect named Joe.
The Stena Forth Drill Ship has been contracted for drilling the prospect. At first, the drillship will dig the Jethro-Lobe well, which is scheduled for early June. Then it will move to the Joe well, which will be drilled at a water depth of 650 meters in mid-July. The Joe prospect from the Upper Tertiary period is expected to hold 150 million barrels of oil equivalent (BOE) and has a 43.2% chance of success. The field is expected to contain around 3.9 billion BOE.
Tullow is the operator of the Orinduik Block and holds 60% stake in it. The company has TOTAL S.A. (NYSE:TOT) and Eco Atlantic as partners in the block, with 25% and 15% interest, respectively. Eco Atlantic will bear net cost of around $3 million in the Joe prospect for its working interests. From Eco Atlantic’s perspective, the net cost for Joe is much lower than the Jethro-Lobe well of around $6.9 million. The huge difference in cost between the two wells is due to the inclusion of rig mobilizing and demobilizing expenses in the first well’s cost.
Tullow Oil and its partners in the block expect the two wells to hold a total of 370 million barrels of Gross Prospective Resources. The company has huge plans of operation in the Orinduik Block’s Jethro prospect in second-quarter 2019. It has a Tertiary target of more than 100 million barrels of oil in the block at 1,350 meters of water depth. Total net well cost to the company is expected at around $30 million. The company intends to focus on the Kanuku block’s Carapa prospect in the third quarter. At a net well cost of $20 million, it has a Cretaceous target of more than 200 million barrels of oil at a water depth of 70 meters.
Price Performance
Tullow has gained 10% in the past year against the 11.2% collective decline of its Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.