The Tullow Oil-led Cormorant-1 deep-water exploration well in the PEL-37 licence, offshore Namibia, encountered non-commercial hydrocarbons and is being plugged and abandoned.
The Cormorant-1 exploration well in Namibia has been drilled to a total depth of 3,855 metres and penetrated the objectives of the Cormorant prospect. Following a farm-out in 2017, Tullow said its net expenditure on this well is expected to be approximately US$5 million.
Angus McCoss, Exploration Director, Tullow Oil, commented: “The Cormorant-1 frontier exploration well was a bold attempt to open a new oil play in this area of Tullow's offshore Namibia acreage. Gas readings while drilling continue to support the concept that there is a working oil system in the area. As a result, following the conclusion of operations, we will analyse the data gathered before deciding on any future activity. While this is not the outcome that we had hoped for, the efficiency of our drilling and our risk management processes resulted in a low financial exposure to this well.”
Tullow operates the PEL-37 licence with 35 per cent equity and is partnered by ONGC Videsh (30 per cent), Pancontinental Oil & Gas (30 per cent) and Paragon (5 per cent).