STOCKS NEWS EUROPE-Tullow, Afren climb on Kenya well rumours

Wed Jan 23, 2013 11:01am EST
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Shares in explorers Tullow and Afren gain 3 percent and 10 percent in late trading as traders cite rumours around a possible successful drilling result from a key well in Kenya, the results of which are due shortly.

"The reason [for the price moves] is market rumours that drilling results on the Kenyan Paipai prospect are coming," one trader says.

Tullow, which has a 50 percent share of the Kenya licence in question alongside partners Afren with 20 percent, and Canada's Africa Oil with 30 percent, said earlier in January that a result from Paipai was expected in February.

Drilling at the high-risk well in the frontier area of northern Kenya started in October.

East Africa has become a hotbed of exploration after several petroleum discoveries in the area, including one by Tullow in Kenya, pushed the region into the international limelight.

Tullow declined to comment on the rise in its share price, while Afren, whose shares hit their highest level since last April, was not available for comment.

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