Tullow Oil upbeat on prospects for oil offshore Gabon

Though reserves encountered so far off the coast of Gabon are non-commercial, Tullow Oil said Friday it was encouraged by the West African results.

Tullow said its drilling partner, Perenco, ran into a 980-foot column of hydrocarbons while drilling into the Arouwe block off the coast of Gabon, but the reserve potential was considered too low to exploit commercially.

Nevertheless, Tullow Exploration Direction Angus McCoss said the data taken from the well was useful for future plans.

"This is an encouraging result from the pre-salt play, offshore Gabon," he said in a statement.

Reserves off the coast of Gabon are similar to those in Brazil in that they're located beneath a thick layer of submarine salt. Gabon's geological similarities to Brazil raised hopes for oil production among energy explorers, but so far the region has turned up mostly natural gas.

Italian energy company Eni and Australian major Woodside Petroleum are among the more active players in a re-emerging Gabonese oil sector.

Oil production peaked in the late 1990s and Gabon has since fallen from the No. 3 oil producer to the No. 6 position in the region because of field maturation.