For the second time in less than a week Tullow Oil has announced a new oil find in Uganda and seen its shares surge.
In partnership with Heritage Oil, Tullow has announced a significant new discovery at the Buffalo-1 well, potentially the biggest find yet in the Butiaba area of the country. Last week the partners announced positive results from the Kingfisher field in Uganda.
Tullow has jumped 45p to 616.5p which Heritage is 19.5p higher at 239.75p. Evolution Securities said:
"17 from 17. Say no more. Tullow and its partner Heritage have a seventeenth successive result in Uganda and potentially the biggest discovery to date in the country. Of wider importance is that Buffalo now pushes the volumes of oil discovered in Uganda over 500m barrels of oil equivalent according to our estimates, therefore passing the threshold for an export scheme. This in turn reduces the risking in valuations. Buffalo on a stand alone basis could add a further 40p to [Tullow's] valuations.
"It could add a further 100p to our Heritage valuation."
