StockMarketWire.com - Tullow Oil has announced that its Carapa-1 exploration well, drilled on the Kanuku licence offshore Guyana, has encountered approximately four metres of net oil pay based on preliminary interpretation.

The company said the preliminary results of drilling, wireline logging, pressure testing and sampling of reservoir fluid indicate the discovery of oil in Upper Cretaceous age sandstone reservoirs.

While net pay is lower than pre-drill forecasts, the 27 degree API oil supports the significant potential of the Cretaceous play on both the Kanuku and adjacent Orinduik licences, Tullow Oil said.

Rig site testing has indicated that the oil is 27 degrees API with a sulphur content of less than 1%, with a detailed laboratory analysis of the oil quality expected in due course.

Tullow Oil chief operating officer Mark MacFarlane said the result at the well was 'an important exploration outcome with positive implications for both the Kanuku and Orinduik blocks'.

MacFarlane said: 'While net pay and reservoir development at this location are below our pre-drill estimates, we are encouraged to find good quality oil which proves the extension of the prolific Cretaceous play into our acreage.

'We will now integrate the results of the three exploration wells drilled in these adjacent licences into our Guyana and Suriname geological and geophysical models before deciding the future work programme.'

The company said the Valaris EXL II jack-up rig drilled the Carapa-1 well to a total depth of 3,290 metres in 68 metres of water and that the well will now be plugged and abandoned.



Story provided by StockMarketWire.com