Shares in Tullow Oil were down over 4pc yesterday following news it expects to report impairments and exploration write-offs of up to $1.7bn (€1.4bn) for the first half of the year.
This is due to lower near-term oil price forecasts and a downward revision in the group's long-term oil price assumption to $60 a barrel from $65 per barrel.
Revenue for the first half of 2020 is predicted to be around $700m, with a realised oil price of $52 a barrel, according to a trading update from the exploration company.
At June 30, net debt is expected to be circa $3bn and liquidity headroom and free cash will be around $500m. Full year free cash flow is forecast to break even at the current oil price forward curve, the group said.
CEO Rahul Dhir said he was "confident" that Tullow can be turned into a "competitive and successful business once again".
"Despite the challenging external environment in the first half of the year, Tullow has performed well, delivering production in line with forecast, agreeing the sale of the Ugandan assets and re-shaping the group's structure and cost base," Mr Dhir said.
In the first half of this year the group's working interest production averaged 77,700 barrels of oil per day, which was in line with expectations.
Capital and decommissioning expenditure guidance for the year remains unchanged at around $300m.