Tullow Oil investors are far from impressed over the oil giants latest update that they discovered oil at its Carapa-1 well in Guyana.
On Thursday share plummeted by 6.5% off 4.15p at 59.85p as Tullow chiefs announced the oil reservoir, they are drilling is far smaller than they first thought sending shares down by 20%.
Mark MacFarlane, chief operating officer said, “The Carapa-1 result is an important exploration outcome with positive implications for both the Kanuku and Orinduik blocks.
“While net pay and reservoir development at this location are below our pre-drill estimates, we are encouraged to find good-quality oil which proves the extension of the prolific Cretaceous play into our acreage.”
MacFarlane added: “We will now integrate the results of the three exploration wells drilled in these adjacent licences into our Guyana and Suriname geological and geophysical models before deciding the future work programme.”
David Round, an analyst at BMO Capital Markets explained, “Expectations were high going into this. There will be a level of disappointment about the size.”