Tullow Oil reports 'solid' start to 2018
Tullow Oil has reported a 'solid' start to its 2018 oil and gas production.
The start has seen it averaging a first-half production of 90,100 barrels of oil equivalent per day, the group said in a trading update today.
Its two major fields, Jubilee and TEN, both performed well which, with an average realised price of $67 per barrel, resulting in an expected first-half revenue of $0.9bn.
The group said that it expects to report a first-half gross profit of $0.5bn and free cash generation of $0.3bn.
"With substantially reduced gearing and financial discipline embedded across the group, we are now able to focus on the growth of the business," Paul Mcdade, CEO of Tullow, said.
"We are accelerating production and cash flow growth across West Africa, we continue to make good progress towards sanctioning our developments in East Africa and, having refreshed the exploration portfolio, we are about to embark on a multi-year frontier drilling campaign targeting high-impact prospects in Africa and South America."
"There is much to look forward to for the remainder of the year and beyond."
Strong free cash flow has enabled the group to further reduce its debt in the first half of the year and Tullow expects net debt to be approximately $3.2bn at 30 June 2018.
The group's unutilised debt capacity and free cash at the end of June 2018 is expected to be approximately $1.2bn.
At the operational level, Tullow and partners have elected to contract a second rig in Ghana to facilitate the rapid completion of development wells on the Jubilee and TEN fields.
In the first half of the year, three development wells were drilled and will be completed in the second half of the year.