Tullow Oil reports 83% drop in profits

Oil explorer Tullow Oil said it had found signs of oil at a well in Uganda that might indicate significant reserves, as the company…

Oil explorer Tullow Oil said it had found signs of oil at a well in Uganda that might indicate significant reserves, as the company unveiled an 83 per cent drop in profits on lower oil prices and production.

Tullow said today that work continued on the Ngassa-2 well near Lake Albert to establish the size of the find.

"The pressures in these intervals are higher than normal, which may indicate that they are associated with significant oil columns," Tullow said in a statement.

Europe's largest independent oil and gas explorer said profit after tax plunged to £21.4 million after oil prices averaged half the levels of the first half of 2008.

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A 16 per cent drop in oil and gas production also weighed on the results.

Reuters