Tullow Oil boosts exploration activity amid low seismic costs

The FTSE 250 group has completed a 3D seismic survey offshore Uruguay and a 2D seismic survey across some of its 11 Jamaica blocks.

The former data will be assessed to choose the best areas to drill candidates in the 100% owned deepwater block, while the data for Jamaica's Walton Morant blocks will be used to refine the location of a potential 3D seismic survey.

Before he hands over the reins to new chief executive Paul McDade, outgoing CEO Aidan Heavey said it had been an exceptionally busy few months for Tullow as it agreed to farm down assets to partners in Uganda, made substantial board changes and launched a $750m rights issue to make a dent in its still-substantial gearing.

"We have also been working hard on moving towards full field development in both Uganda and Kenya and have made good progress on the Jubilee Turret remediation project and optimising production from the TEN field," he said, feeling that he was handing over the role "confident that Tullow has the financial and operational flexibility to prosper in 2017 and beyond".

Among other new venture activity, Tullow plans 3D surveys in three blocks in Mauritania in May to cover potential new oil plays.

In the third quarter, a 100% owned onshore licence in Zambia will be scanned with a 20,000 sq km full tensor gradiometry survey, to cover three unexplored tertiary rift basins, including the Zambian parts of Lake Mweru, Lake Mweru Wantipa and Lake Tanganyika, which would lead to a 2D seismic survey if results are positive.

The company, also will begin a 3D seismic survey offshore Guyana over the Kanuku licence, directly up-dip of Exxon's Liza discovery, with the results used to define potential prospects for drilling in 2018/19.

A 3D survey over the Orinduik licence in Guyana is due to follow in July.

Preparations for the Araku well, offshore Suriname, continue ahead of drilling which is on track to commence in the fourth quarter of 2017.