LONDON Dec 4 British explorer Tullow Oil
said on Tuesday the Zaedyus-2 appraisal well in French
Guiana had not found any commercial hydrocarbons, dampening
hopes of a large new oil field offshore the South American
The well, located 5km from the Zaedyus-1 well where oil was
struck last year, found oil shows but nothing commercial, Tullow
Shares in Tullow fell 5 percent to 1,300 pence at 1146 GMT,
making it the biggest FTSE 100 faller.
Tullow said reservoirs at the location were not connected to
Zaedyus-1 and that the result had no bearing on the bulk of the
area yet to be drilled, however.
"The French Guiana block remains highly prospective,
particularly down-dip, and still offers excellent potential for
multiple exploration successes," Tullow said in a statement.
Tullow has exploration rights to large swathes of territory
offshore French Guiana, Suriname and Guyana, hoping to replicate
its success in finding big fields offshore West Africa.
The company believes the regions have shared geology
stemming from when Africa and South America were connected many
millions of years ago.
Tullow has a 27.5 percent stake in the Guyane Maritime
licence and is partnered by Royal Dutch Shell, which
holds 45 percent, and Total with 25 percent.
A joint venture between smallcaps Northern Petroleum
and Wessex Exploration owns 2.5 percent. Northern
Petroleum shares fell 14 percent on Tuesday, while Wessex was
down 23 percent.