TULLOW Oil has announced disappointing results from an exploration well in Pakistan which flowed poor quality gas. The shares have fallen by 6p to 99 1/2p Managing director, Mr Aidan Heavey said the company was disappointed by the quality of the gas discovered in the Sara West-1 located in East Badin extension Block B. This the company considered to be "sub commercial at present".
The well flowed gas at rates of up to 25 million standard cubic feet a day from a gross gas column of 95 metres. Analysis of the gas, Tullow said, indicated a composition of 14 per cent combustible hydrocarbons, 62 per cent carbon dioxide and 24 per cent nitrogen. The proportion of non combustible components was "higher than anticipated". The well has now been suspended pending further evaluation.
Mr Heavey noted it was a large structure. Admitting it was a "long shot", he noted that "technology is changing".
The drilling rig is now being moved to the commercial Sara field to drill the Sara C appraisal well.
Tullow shares have been heavily traded recently on a combination of speculation on the gas testing programme in Pakistan and renewed rumours that it may become a bid target.
