By Tapan Panchal
LONDON--Oil and gas exploration company Tullow Oil PLC (TLW.LN)
said Friday it has encountered water-bearing reservoirs in the
Shimela-1 well in the South Omo Block, onshore Ethiopia.
The well encountered lacustrine and volcanic rocks including 100
meters of net sandstone reservoir within siltstones and claystones.
The Exalo 205 rig drilled the well to a final depth of 1,940 meters
and will now be moved to drill the Gardim-1 well in the
south-eastern corner of the Chew Bahir basin, Ethiopia.
Tullow Oil operates the South Omo Block with 50% equity
interest, Afica Oil Corp.(AOI.T) owns a 30% stake and Marathon Oil
Ethiopia Limited B.V. owns 20% equity interest in the block.
Marathon Oil Ethiopia is a unit of Marathon Oil Corp. (MRO).
Shares of Tullow Oil on Thursday closed at 852 pence, valuing
the company at 7.75 billion pounds ($13.08 billion).
Write to Tapan Panchal at tapan.panchal@wsj.com
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