British oil major Tullow Oil (TLW) has struck lucky in Ghana with an oil and gas discovery at its Teak-1 exploration well.
The offshore well hit 73 metres of net hydrocarbons across all five of the targeted reservoirs, the FTSE 100 giant announced on Thursday.
The well, located just outside of the Jubilee Unit boundary, encountered six metres of oil pay in the upper zone of the shallower Campanian-aged reservoirs and 33 metres of gas pay with an underlying 15 metre 40 degree API oil leg in the lower zone.
In the deeper stratigraphic Turonian-aged reservoirs, the well intersected 14 metres of gas-condensate pay in two separate zones, it added.
"Success in all five of the targeted reservoirs is an excellent outcome for the Teak-1 well and a great start to our 2011 multi-well exploration campaign in the West Cape Three Points licence," exploration director Angus McCoss said.
Tullow, which owns a 22.9% interest in the licence, said it plans to carry out further appraisal work on the up-dip combination structural and stratigraphic Campanian trap.
"The significant potential of this discovery, up-dip of Jubilee, will be appraised during 2011 and 2012 once the current drill-out campaign has been completed," McCoss added.
Richard Griffith, analyst at Evolution Securities, commented: "Tullow has had yet more success offshore Ghana and the result indicates every likelihood that the pre-drill P50 estimate of 100 million barrels of oil equivalent will be exceeded. We raise our target price to 1,520p."