VENTURES AFRICA – Tullow Oil has revealed mixed results of drilling in Ghana, announcing the start to full-production at its Jubilee operations, while Okure-1 drilling has failed to find oil reserves.
British-owned Tullow today announced that its Jubilee Phase 1A well has begun full on-stream production, and is currently achieving at output of 16,500 barrels per day (bpd) bringing the field-wide output total to 90,000 bpd.
The company plans five Phase 1A wells, and envisages completion of construction by mid-2013, with the second Phase 1A production billed for before the end of 2012.
The producer has also revealed that acid stimulation activities have been implemented at the rig present at the Jubilee field, in a bid to further enhance production at the field prior to the completion of the second Phase 1A well, and the further three early next year.
Meanwhile, drilling at the company’s Okure-1 site at the Deepwater Tano licence has not been fruitful as expected, with the drilling project failing to hit oil.
The company revealed that non-reservoir quality formations were encountered, with low net to gross oil encountered. The light oil of 40 API found at the site is not connected to further discoveries in the licence area.
As such the company will be withdrawing from the area, and moving its rig to locations adjacent to the Jubilee field.
Tullow shares responded to the news of the failed drilling by sliding 4.8 per cent today, to trade at 1,196 pence ($ 19.2).
In a separate statement, Tullow has also announced plans to launch into the Norwegian oil production arena, in plans to buy Spring Energy Norway AS – a Norwegian oil exploration company – for up to $672 million.
The company announced the proposed purchase of the explorer for $372 million, with the possibility of an additional $300 million payment dependent on exploration and drilling successes.
The announcement sees the traditionally Africa-focused producer move into the less-popular European market, and attempt to capitalise on a string of oil discoveries off the coast of Norway in the recent period.