Tullow slides in London trading after underwhelming oil probe

Tullow Oil's drillings in South American Guyana turned up less crude than projected.

UK-based company Tullow Oil reports underwhelming findings from its recent drillings in Guyana, South America.

The oil outfit did strike crude, but the reservoir is smaller than the company's initial expectations prior to drilling, writes Bloomberg News.

Investors reacted poorly to this news, sending Tullow's equity down 20 percent Thursday.

A fair share of the panic abated by around 12:30 Thursday, with the share price having fallen only 6.2 percent to GBP 0.6006.

As of today, Monday, at 9:55, Tullow's stock price was 4.5 percent lower than before the announcement and traded in London for GBP 0.6114 per share.

"Expectations were high going into this. There will be a level of disappointment about the size," BMO Capital Markets Analyst David Round tells Bloomberg.

The oil company went through a tough 2019, during which its equity depreciated 64 percent, and both the CEO and exploration chief resigned.

Among other factors, extraction in Ghana impacted by technical difficulties in the year as well as delayed projects in Uganda and Kenya burdened the company.

English Edit: Daniel Frank Christensen

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