Broker snap: Credit Suisse ups target for Tullow after Kenya find

8th May 2012 09:33

Credit Suisse has raised its target price for Tullow Oil after the company revealed this morning that it has found more oil at one of its exploration wells in Kenya.The Ngamia-1 well, located in the Turkana Country of Kenya Block 10BB, is the oil company's first prospect to be tested as part of the project in Kenya and Ehtiopia. Following an announcement on March 26th that said that the well had encountered in excess of 20m of net oil pay, the well was then deepened from 1,041m to 1,515m and a total pay count greater than 100m has now been discovered. "Another positive update on Ngamia-1 in Kenya. This is earlier than expected, and we like what we read," the broker said, adding that it also welcomes Tullow's intention to add more rig capacity to accelerate drilling in the region.The target price is lifted from 1,818p to 1,841p to reflect "increasing the resource potential on Ngamia, adding Twiga to the 2012 drilling programme, and some conservative de-risking elsewhere in Kenya."Credit Suisse has maintained an outperform rating on the stock.Shares were trading 3.74% higher at 1,524p by 09:51 on Tuesday.BC