(Alliance News) - Tullow Oil PLC on Monday announced disappointing drilling results at the Marina-1 exploration well off the coast of Peru.
The well did not find any "significant" hydrocarbons, Tullow said. It was testing the La Cruz and Mal Pelo formations, with some minor gas shows found but no discoveries in the main targets.
Tullow said the well was drilled to a total depth of 3,022 metres, in water 362 metres deep. Marina-1 will now be plugged and abandoned.
Tullow has a 35% interest in the well, which is operating by Karoon Energy with a 40% stake. Pitkin Petroleum holds the remaining 25%.
Mark MacFarlane, Tullow's chief operating officer, commented: "This is the first ever well in the deep-water section of the under-explored Tumbes basin. We will now integrate the important well information with the seismic data that we are currently reprocessing and update our prospect inventory for blocks Z-38 and Z-64.
"Tullow is building an extensive exploration position in Peru and, while this result is not what we had hoped for, we remain positive about Peru's wider offshore exploration potential."
This is not the first exploration disappointment for Tullow so far this year. At the start of January, it announced an oil discovery at the Kanuku licence in Guyana, but not as much was found as expected.
Tullow's existing production assets in Ghana have also been struggling. A number of output guidance cuts in 2019 led to Chief Executive Paul McDade departing in December.
Given resulting cash flow forecasts, Tullow also suspended its dividend.
Tullow shares were 2.9% lower on Monday morning at 43.57 pence each. Six months ago, they were at 209.80p.
By George Collard; georgecollard@alliancenews.com
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