Wessex Exploration (LON:WSX) could be an interesting "punt" on Tullow Oil’s first exploration well in the vast EEL Exploration Licence] offshore in Guyane. South America.  Tullow Oil (LON:TLW) has a 27.5% interest In this licence and is operator, Shell London [RDSB] has 45% and Total [TOT] has 25%. The remaining 2.5% interest is shared 1.25% each between Northern Petroleum [NOP] and Wessex Exploration [WSP] and is held in the NOP subsidiary Northpet Investments. [source for the percentage holdings - Proactive Investors article on WSX dated Monday 23rd March]

Wessex shares closed at 3.5p on 23rd March after their move to AIM. If the present drilling project is even moderately successful, one feels that the effect on the Wessex share price could be surprising. The prospect of this micro company having even a small interest in a potential mega oil/gas field could be transformational. As a result the upside in the short to medium term could perhaps be a doubling or perhaps more of the present price.

On the other hand, if the exploration well is not a success, the downside from the present 3.5p share price one feels could be limited, perhaps to 50% or so.

However time will tell. The drilling is ongoing and I feel that a result should emerge in the next six months. For shareholders in Wessex Exploration the next few months could be very interesting indeed!

Tullow regards the potential of Guyane to be significant as they have stated that geology of the licence area to be similar to that in offshore Ghana, where they have made recent discoveries. 

 Tullow acquired the EEL Licence in 2007 from the original licensee, Hardman Resources. Since then there has been a great deal of work carried out by Tullow in the licence area and drilling is now under way. Tullow commenced drilling the Zaedyus Prospect in March 2011 with the first exploration well GM-ES-1 well on the Guyane Maritime Permit.Quote from the Wessex website "Tullow believes the well has the potential to open up a major new oil province in French Guyane, with a significant number of further prospects and leads identified. Tullow has stated that the Zaedyus prospect has an estimated P10 prospective resource of up to 700 million barrels of oil and is geologically analogous to its Jubilee field, located…

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