Tullow Abandons Tanzania Well

31 March 2010 (Last Updated March 31st, 2010 18:30)

Tullow Oil said an exploration well in Tanzania has encountered signs of hydrocarbons, boosting prospects for the area even though water flooding means the well will be plugged and abandoned. In a statement Tullow said the Likonde-1 well in the Ruvuma Basin of southern Tanzania was the

Tullow Oil said an exploration well in Tanzania has encountered signs of hydrocarbons, boosting prospects for the area even though water flooding means the well will be plugged and abandoned.

In a statement Tullow said the Likonde-1 well in the Ruvuma Basin of southern Tanzania was the first of a two-well programme within the area.

"The result is highly encouraging as it confirms the prospectivity of the basin and shows the oil potential of the block," Merrill Lynch said in an analyst note circulated by Tullow, reports Reuters.

Tullow shares were up 1.6% at 1,270p at 9:56am GMT, against a 1.3% rise in the STOXX Europe 600 Oil and Gas index.