EXPLORATION GROUP Tullow Oil reported mixed results yesterday from drilling programmes in Uganda.

The company, listed in Dublin and London, said it failed to find oil or gas in the deepest section of its Kingfisher-2 well, but it had already established that there are reserves in other sections of the block.

The Irish company has already found that the nearby Kingfisher-1 could potentially deliver up to 9,773 barrels of crude oil a day.

Tullow also reported that it has found oil and gas in the Kasamene-1 well in the African country's Butiaba region. The company described the quality of the reserves as excellent.

The Kasamene discovery was the second successful test within the Lake Albert Rift Basin, where Tullow has a number of exploration licences.

Chief executive Aidan Heavey said Kasamene was the company's most important discovery to date in its Butiaba drilling campaign.

"While the deep exploration objective in the Kingfisher-2 well at this location did not find additional hydrocarbons [ oil and gas], this well has proved a significant discovery."

Reacting to the news, Davy stockbrokers analysts Caren Crowley Job Langbroek and James McCullough cut their estimate of Tullow's value by 24 pence sterling a share to £9.97.

They set a price target of £11 for the stock, which they said reflected the overall quality of Tullow's portfolio and its management's strong track record.

Investors reacted positively to the news in Dublin yesterday. By 4.30pm, Tullow had gained 15 cent on its opening quote of €9.10 and was trading at €9.25, a gain of more than 1.6 per cent.