A new oil discovery has been made in Kenya by oil exploration company Tullow Oil. Flow tests carried out at a discovery well in the country have smashed expectations and promise to bring positive results for the oil explorer. After a disappointing start to the year the new Kenyan discovery will be a welcome relief for Tullow Oil and its investors.
Following a poor trading statement released in January the East African oil explorer was under increasing pressure to deliver good results. With the new discovery and half-year numbers well above their forecasts, Tullow Oil is primed to attract new investors, whilst restoring faith in their existing investors.
The Kenyan discovery heralded the only piece of good news for the oil industry after the developing story in Egypt and an increase in demand from the US pushed oil prices up. Following the oil-find announcement Tullow Oil leapt ahead of its competitors to the top of the FTSE 100 with a gain of 2.7%, the largest rise in the FTSE 100 that day.
Originating in Dublin, Ireland, Tullow Oil began trading in 1986. After a slow and steady start the oil exploration company found success in 2004, doubling in size following the acquisition of Energy Africa and in 2007 made its largest-ever discovery in Ghana. With oil discoveries in Uganda, gas finds in Tanzania and now the discovery in Kenya Tullow Oil looks to have turned its fortunes around for 2013.