Tullow Oil had its share-price forecast raised by Deutsche Bank AG after the explorer said results from an oil well in Ghana were “excellent”.
Tullow's price estimate was increased to 1,070 pence from 1,040 pence by Deutsche Bank analyst Jonathan Copus, according to a note today. The bank reiterated its "buy" recommendation on Tullow shares, which traded up 0.2 per cent at 940.5 pence as of 8.09am in London.
Tullow's Mahogany-2 well at the Jubilee field offshore Ghana found oil flowing at a test rate of 5,200 barrels a day and gas flows of about 5.3 million cubic feet a day, the company said yesterday.
Tullow expects production to be more than 20,000 barrels a day with start-up scheduled for 2010.
"Testing has confirmed reserve estimates and further highlights the high quality of Jubilee - a field of industry-wide significance," Deutsche Bank said.
Bloomberg