Source - Alliance News

Tullow Oil PLC on Wednesday kept its annual production outlook unchanged after what it called a solid first-half performance, while it continues to progress its agreed merger with Capricorn Energy PLC.

The London-based oil and gas company said it performed well in the first half of 2022, with production in line with expectations.

Further, Tullow said the drilling performance across its portfolio was ‘strong’.

In the first half, the company recorded gross production of 82,400 barrels of oil per day at its Jubilee field and 24,300 bopd at its TEN fields, both in Ghana. Net to Tullow was 30,800 and 12,500 bopd, respectively. In Gabon, it produced 6,000 bopd at its Simba field, and it produced 2,100 bopd at its Espoir field in Ivory Coast.

Tullow Oil generated revenue of $800 million in the period, including the cost of hedging.

The company kept its annual production guidance at 59,000 to 65,000 barrels of oil equivalent per day, including its recent increase in ownership of projects in Ghana. Tullow exercised its pre-emption rights over the sale by Occidental Petroleum Corp of its interest in the Jubilee and TEN fields to Kosmos Energy Ltd. Tullow will now hold a 38.9% interest in Jubilee and 54.8% in TEN.

It also maintained its free cash flow guidance of $200 million, assuming an average oil price of $95 per barrels of oil.

Tullow said the process for securing a partner for its oil project in Kenya continues, and it expects to make progress on this in the second half.

In relation to its all-share merger with fellow London listing Capricorn Energy, Tullow said it is currently preparing a circular and prospectus for shareholders.

The company expects this to be available in the fourth quarter ahead of a shareholder vote about the merger.

The vote is expected towards the end of 2022.

‘It is two years since I joined Tullow and today, we are in a very different place. A relentless focus on costs, capital discipline and operating performance is ensuring delivery of our business plan,’ Chief Executive Rahul Dhir said.

‘We also continue to make progress on securing a strategic partner for project Oil Kenya, which has the potential to be a key driver of growth, value and diversification for Tullow.’

Shares were down 1.4% at 43.24 pence each on Wednesday morning in London.

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