Companies: TLW   

Tullow Oil predicts a ‘material’ resource upgrade after recent drilling results from the Jubilee field off the Ghanaian coast.

The fully listed company says appraisal drilling at Jubilee’s Mahogany-2 well has intersected ‘a significant column of light oil’. Tullow suggests this indicates that Jubilee is a ‘single continuous stratigraphic trap extending at least 11km to the Hyedua-1 discovery well’ in the adjacent Deepwater Tano licence.

Chief executive Aidan Heavey argues the results from Mahogany-2 reinforce Tullow’s interpretation that ‘Jubilee is a major discovery and is likely to lead to a material upgrade of current resource estimates’. Tullow will now start a limited test flow to determine potential production rates from what the company calls ‘these excellent quality reservoirs’.

First recommended by Growth Company Investor five years ago at 72p, Tullow shares have now reached 890p, up 130p this morning, valuing the company at £6.4 billion.
Hold on.

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