Exploration group Tullow Oil has taken a 15 per cent stake in an exploration field off the coast of Angola, close to the site of two failed wells it drilled last month.
The field, known as Block 24, is located in the Southern Kwanza Basin and is operated by Devon Energy.
Tullow's agreement is with Ocean Angola, a unit of Devon Energy. In a statement to the stock exchange Tullow said the block was covered by good quality seismic and was situated in water depths of between 750 and 1,600 metres.
However it said one well, Kabetula-1, had already been plugged and abandoned after no hydrocarbons were found.
Yesterday's announcement comes less than a month after the company said it had failed to find oil at two other Angolan wells in Block 10.
"The recent exploration wells on Blocks 10 and 24 demonstrate the high-risk nature of exploration in the Southern Kwanza Basin," said chief executive of Tullow Oil Aidan Heavey.
"However, the entry into these large blocks, which are likely to yield further high impact prospects, is part of a long-term commitment by Tullow to building a business in Angola."
Mr Heavey said the company expected to drill more than 20 exploration wells at various locations around the world during the next 12 months.
Gerry Hennigan, an analyst at Goodbody, welcomed yesterday's news in a note to investors, saying that the addition of new wells increased the group's diversity and therefore the potential to discover oil in the future.
Shares of Tullow fell seven cent to end the day at €4.14.
