This morning mid-tier oil producer, Tullow Oil (LSE: TLW) (‘Tullow’) reported a number of developments among its exploration projects.
In Ghana the FTSE100 constituent revealed results from an appraisal well, with operating partner Kosmos confirming and extending a previous discovery. Elsewhere Tullow sold 25% interest in a South American deep water exploration program.
Offshore Ghana, Tullow has approximately 22.9% interest in the West Cape Three Points Block, which is being operated by privately owned Kosmos Energy (‘Kosmos’). Earlier today, Kosmos said its Odum-2 appraisal well penetrated net hydrocarbon-bearing pay of 20 meters, confirming 2008’s Odum oil discovery. Odum-2 was drilled by the "Atwood Hunter" semi-submersible rig to a total depth of 2,506 metres.
The appraisal well is about 4km northeast of the Odum-1 well; Odum-2 encountered 20 meters of net oil pay in two intervals that appear to be in static pressure communication with the Odum-1 well. It also extended the known column beyond the deepest oil seen in Odum-1. Reservoir fluid samples recovered indicate an oil gravity of approximately 18-19 degrees API (American Petroleum Institute’s Quality measure).
The West Cape Three Points Block is being explored through a joint venture between several partners. Kosmos Energy owns approximately 30.875%, with the supporting partner Anadarko Petroleum (NYSE: APC) also owning 30.875%, Tullow holds a 22.896% interest. Privately owned minority interests include the EO Group with a 3.5% interest and Sabre Oil & Gas who has a 1.854% stake. The Ghana National Petroleum Corporation (GNPC) has a 10% carried interest.
The "Atwood Hunter" will now be transferred to the adjacent Tullow operated deepwater Tano Block, where it will drill the Tweneboa-2 appraisal well, to evaluate previous discoveries. The FTSE100 oil producer owns 49.95% in the Tano block. Anadarko, Kosmos, Sabre and GNPC also hold a stake in the project.
Also today, supermajor Total SA (NYSE: TOT) acquired a 25% interest in Tullow Oil’s Guyane Maritime off the coast of the French Guiana, South America. The vast 32,000km₂ deep water acreage is said to compliment Total’s other exploration projects in other regions.
A 3D seismic acquisition program covering up to 3,000 km2 is already underway on the permit. Total said it will be able to bring its deep water expertise to the exploration program.
The permit is being operated by Tullow’s French registered subsidiary, Hardman Petroleum France SAS. Following today’s deal Hardman Petroleum owns a 39.5% interest in the project, while Royal Dutch Shell (LSE: RDSB) retains 33%, Total SA owns 25% and Northpet Investments owns 2.5%. AIM Northern Petroleum (AIM: NOP) holds 50% of the equity in Northpet.