Another disappointing well result saw Tullow Oil’s (TLW) shares fall on the first trading day of 2020. The exploration and production company’s poor run began in November, when it announced its hyped-up Guyana finds contained heavy oil and that their commerciality was not certain.
This time, Tullow said it had seen lower net oil pay than expected at the Carapa-1well in Guyana. The well will now be plugged and abandoned.
Tullow chief operating officer Mark MacFarlane said the discovery of “good quality oil” was positive news for the rest of the block. Investors were not so optimistic, with the company’s share price down 6 per cent on the news, to 60p. At the start of 2019, Tullow was trading at over 180p.
The company also said its production would be lower in 2020 than in 2019, falling to 70,000-80,000 barrels of oil per day (bopd) from 87,000 bopd.
