Tullow says wells in Mozambique, French Guiana fail to find oil

By Brian Swint
Bloomberg News

Tullow Oil Plc (TLW), a U.K. oil and gas explorer, said wells in Mozambique and French Guiana failed to make discoveries.

The Cachalote-1 exploration well off the coast of Mozambique, drilled with operator Statoil ASA (STL) and others, encountered gas that isn’t commercial and didn’t find oil, Tullow said in a statement today. The company is searching for oil close to where others have made the century’s biggest natural gas discoveries off the East African coast.

“The potential for discovering oil in this region remains,” said Exploration Director Angus McCoss. “We will integrate this valuable data into our regional model to improve our chances of unlocking the oil play potential offshore Mozambique.”

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Tullow has declined more than 11 percent this year after a previous exploration well in French Guiana failed to find significant oil in April and projects in Ethiopia were delayed. The setbacks blemished the company’s record of exploration success in Kenya and Ghana, where its Jubilee discovery in 2010 opened up a new oil province.

In South America, the GM-ES-4 exploration well in French Guiana, where Tullow found the country’s first crude with the Zaedyus discovery in 2011, revealed no hydrocarbons, it said today. Royal Dutch Shell Plc (RDSA) is the operator on that block and Total SA (FP) also owns a stake.