Tullow reports significant find in Ghana

Tullow Oil has reported a "significant" oil discovery in Ghana.

Tullow Oil has reported a "significant" oil discovery in Ghana.

It found "significant light oil accumulation" in the offshore Mahogany-1 exploration well on the West Cape Three Points license.

The hole, which has been drilled to a depth of 3,683 metres, "encountered a gross hydrocarbon column of 270 metres with 95 metres of net stacked pay," Tullow said in a drilling statement.

Mahogany-1 will be drilled up to a depth of 4,200 metres.

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"Based on evidence to date, ultimate reserves are likely to be materially in excess of previous estimates, with some high-potential zones still to be drilled," said chief executive Aidan Heavey.

Analysts are now estimating the West Cape Three prospect to contain around 300-400 million barrels of oil following the Mahogany-1 discovery.