1 Out Of 11 Is Not Bad For Tullow Oil

Michael Teague |

Tullow Oil ($TUWOY), one of the UK’s leading independent oil and gas explorers and producers, was up four percent on the pink sheets on Friday to $8.33 per share on news that the company had finally hit pay dirt off of the coast of Norway.

The news is significant if only for the fact that during 2013 alone, the company has attempted 10 other such wells in various areas throughout the world, to no avail. With a market cap of $15 billion, Tullow is less like one of the US oil majors such as ExxonMobil (XOM) or Chevron (CVX) , and more like Marathon Oil (MRO) or EOG Resources (EOG) .

The discovery announced today is located in the Barents Sea, just above the tip of Scandinavia and the western coast of Russia. In concert with partners OMV AG and Statoil ASA (STO) , Tullow has made what it is calling a “breakthrough” discovery of oil; indeed, the Hoop-Maud basin where the new well is located could contain anywhere between 60 and 120 million barrels of crude.

Last year, Tullow acquired Spring Energy AS for $372 million, but until today’s announcement the company had come up empty on drilling projects in Mozambique and elsewhere. But the Norwegian off-shore discovery could also dovetail nicely with the Tullow’s more recent revelation that it had purchased itself a stake in Australian energy firm Pancontinental Oil & Gas NL (PCOGF) .

Heading towards the end of the regular trading session, Pancontinental was up over 30 percent on the pink sheets to $0.085 per share, but Statoil fared better with a 1.4 percent bump to $22.45 per share.


[Image Courtesy of Wikimedia Commons]

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Symbol Name Price Change % Volume
CVX Chevron Corporation 106.12 -0.40 -0.38 4,491,301 Trade
MRO Marathon Oil Corporation 14.44 -0.09 -0.62 10,009,221 Trade
EOG EOG Resources Inc. 93.11 -0.70 -0.75 2,004,660 Trade
XOM Exxon Mobil Corporation 82.29 0.36 0.44 9,219,495 Trade
STO Statoil ASA 18.28 0.05 0.27 1,499,020 Trade
CHPTY CSPC Pharmaceuticals Group Ltd. ADR (Sponsored) 73.36 0.00 0.00 0


Emerging Growth

Breathtec BioMedical Inc.

Breathtec Biomedical Inc is a medical diagnostics company. It is engaged in developing & commercializing breath analysis devices for the early detection of infections & life threatening diseases including cancers,…

Private Markets

Mesa-Marshall 2 Well Project

MESA Resources ("MESA") is sponsoring the development of the two well direct drilling project -- "Mesa-Marshall #1-2". MESA, founded in 1992, is engaged in the acquisition, exploration and development of…

Santo Diablo Mezcal

Santo Diablo Mezcal has been created to capitalize on a boom sector of the beverage market currently full of many small unmemorable products by producing one sexy, household, easily recognizable…