Tullow move hits shares

Shares in Tullow came under pressure yesterday after the exploration firm said it was abandoning a well in Bangladesh without discovering any gas.

Tullow will now plug the Rasulpur-1 well and move on to drilling the second well in a three-well programme.

The firm's chief executive, Mr Aidan Heavey, described the Rasulpur result as "disappointing". He went on to highlight the firm's remaining drilling programme, which he said could add "significant value" to Tullow.

A company spokeswoman said it had repeatedly indicated that success in one of the three Bangladeshi wells would represent a good result. She said the abandoned well was the smallest of the three prospects being investigated in the area. Tullow has a 30 per cent interest in the prospect and is the operator of the drilling programme.

Estimates from Tullow's broker, Davy, suggest that if the first well had been successful, it could have contained sufficient gas reserves to add 2p to Tullow's share price.

Davy analyst Mr Job Langbroek acknowledged that the news could knock sentiment on the stock. Yesterday morning, Tullow shares shed almost 9 per cent in early London trade. They recovered ground later but still ended 1.5p weaker at 95p sterling.