Tullow shares drop on back of falling oil prices

Tullow shares fell to their lowest level in almost six years in London trading today on the back of falling oil prices, which depressed energy stocks across the sector.

Brent oil prices hit a four-year low at just over $88 a barrel, after trading at over $100 per barrel just a few weeks ago. This was put down to demand uncertainty from China and Japan .

Tullow shares fell as much as 4.6 per cent to 545 pence at one point, the lowest price since December 2008.

The exploration company also reported that a dry well off the Gabon coast.

The Sputnik-1 well “encountered non-commercial hydrocarbon pay in up to 300 meters of net sandstone reservoir,” the London-based company said, citing Perenco, its partner in the Arouwe block.

Tullow and Perenco each have a 35 per cent stake in the block, with Exxon Mobil holding the remainder.

Tullow exited exploration off Mozambique after failing to make a discovery. Tullow said in a separate statement it completed the sale of its stakes in the Schooner and Ketch assets in the North Sea to Faroe Petroleum.

The company continues to market its remaining southern North Sea gas assets in the UK, it said.

Additional reporting by Bloomberg