FTSE 100 movers: Oil strike lifts Tullow by a fifth

06.05.2008

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Shares in oil and gas exploration group Tullow Oil leapt more than 20% as its Mahogany-2 well offshore Ghana hit a significant column of light oil, which is expected to boost the firm's current resource estimates of the area.

In a company statement chief executive Aidan Heavey said, "The confirmation that Mahogany-2 is in communication with both Mahogany-1 and Hyedua-1, reinforces our interpretation that Jubilee is a major discovery and is likely to lead to a material upgrade of current resource estimates."

Other oil groups were also in buoyant mood as the price of crude topped $120 per barrel for the first time. BG and Cairn both made hefty gains, but big fuel user British Airways was one of the casualties.

Lloyds TSB is another faller despite the bank effectively ruling out a rights issue after reporting its capital ratios were robust. Lloyds TSB wrote down £387m during the first quarter and experienced weaker growth in insurance, although the high street bank says it is on course for a "good" first half.

Profit before tax at Wholesale and International Banking has been cut by £387m in the first quarter of 2008 due to write-downs related to the credit crisis, Britain's fifth largest bank admitted.

FTSE 100 - Risers

Tullow Oil (TLW) 919.50p +20.99%

Whitbread (WTB) 1,319.00p +3.29%

BG Group (BG.) 1,300.00p +3.09%

Vedanta Resources (VED) 2,420.00p +2.76%

Capita Group (CPI) 681.50p +2.64%

Cairn Energy (CNE) 3,154.00p +2.64%