Just got hold of Merrill's reaction...Mahogany comes in BIG,...

Just got hold of Merrill's reaction

...Mahogany comes in BIG, further upside yet to be tested...Tullow has this morning announced that the Mahogany-1 exploration well, offshore Ghana, has likely made by far the largest oil discovery in the company's
history. To date the well has been drilled to a depth of 3,683m and has
encountered a gross hydrocarbon column of 270m with 95m of net stacked pay. With no oil:water contact having yet been encountered the company intends to drill the well a further c500m to test several additional prospective reservoir horizons. Drilling is expected to be completed within the next two weeks, but already we estimate the company to have discovered a gross c300mb of light oil, with an additional c300mb+ of upside still to be tested. Subject to rig availability, Tullow is now likely drill up to four Mahogany appraisal wells in 2008/9 aimed at
further delineating this potentially vast structure....

Increasing NAV to 485p/sh
Price Objective 535p/sh

ML also say ...Tullow has identified a host of further exploration leads and prospects across its acreage which it is considering testing over the next three years (of which only a further 2 are included in our NAV). We would highlight, however, that pre-drill Mahogany was distinguished on Tullow's 3-D seismic interpretation as having a very bright amplitude anomaly, which the company has not yet identified across these other leads and prospects...

So caveat emptor.