Energy explorer Tullow Oil Plc shrugged off a bigger than expected fall in 2007 profit, saying today it was set to invest "a lot of money" in its biggest ever discovery, in Ghana.
"The Jubilee and Odum discoveries in Ghana have opened up new geological plays in the region and at least two exploration wells each targeting prospects with 500 million barrel upside potential are planned in the next year," Tullow said.
Hit by exploration coats, Tullow's pretax profit fell 57 per cent to 114.2 million pounds (€149.3 million), on sales up 10 per cent to £639 million.
"A 19 per cent decline in realised gas price, which represents 40 per cent of revenue, impacted our performance and this, combined with increased depreciation and interest charges and exploration writeoffs, meant that earnings per share declined 71 per cent to 7.10 pence," Tullow said in a statement.
Its shares rose 0.6 per cent to 634 pence in early trading.
By its nature, oil exploration involves failed projects but success is lucrative.