Tullow plugs and abandons Ethiopian well

14th Jul 2014 14:10

Tullow Oil disappointed the market on Monday with the news that one of its exploration wells onshore Ethiopia had failed to find commercial oil.The Gardim-1 well in the Chew Bahir Basin in the South Omo licence reached a total depth of 2,468 metres "without encountering commercial oil", the group said in a statement.The well intersected lacustrine and volcanic formations, but only "minor" intervals with thermogenic gas shows were intersected. As such, Gardim-1 will be plugged and abandoned.This is the second wildcat well in the Chew Bahir Basin which has failed to encounter commercial oil.Exploration Director Angus McCoss said: "Whilst our analysis continues, initial indications suggest that the targeted seismic anomalies related to lavas that flowed into a lake basin. "Having gained valuable data, including evidence of thermogenic gas, we look forward to the next phase of our exploration campaign in Ethiopia."Tullow's shares were down 0.23% at 788.15p by 14:10.BC