London market gushes over Tullow
Shares in Irish oil explorer Tullow Oil rose sharply on London's FTSE 250 Index today after it revealed a significant discovery off the coast of Ghana.
Tullow Oil shares rose 10% as it said ultimate reserves on the project were likely to be "materially in excess" of previous estimates, with some high potential zones still to be drilled.
It described the discovery of oil in the Mahogany well as a major event for Ghana and Tullow.
Among City brokers, Evolution Securities raised its target price for Tullow from 414p to 500p and said estimates for Mahogany were much higher than its pre-drill expectations. Shares stood at 450p today.
Founded in 1985, Tullow's origins are in Africa while it became active in South Asia in 1990 and in the UK gas market in 2001.
The group has interests in around 120 exploration and production licences in 23 countries.
