Tullow advances oil projects as free cash flow increases
Tullow Oil is on track to have produced between 87,000 and 91,000 barrels of oil a day during the current year, with CEO Paul McDade telling shareholders that the group has performed well against a backdrop of volatile oil prices.
Tullow Oil had previously expected to produce between 89,000 and 95,000 barrels of oil a day for the year.
The company is primarily engaged in production and exploration in Africa, but has operations in a number of other regions. Its main African assets include the TEN (Tweneboa, Enyenra, Ntomme) and Jubilee fields off Ghana.
"We are generating high levels of free cash flow from our west African assets, making good progress towards project sanctions in east Africa and are finalising our 2019 exploration programme which we expect to include high-impact wells in Guyana," said Mr McDade.
He added that after a tumultuous few years that saw Tullow slash its workforce after the price of oil slumped, the company is now focused on "delivering growth and returns to our shareholders".
Tullow currently has two rigs operating in Ghana. The Maersk Venturer has been operating there since March, while the Stena Forth began operations last month.
Tullow said the rigs are allowing simultaneous drilling and completion activity across the TEN and Jubilee fields.
"The drilling programme is running to plan with four production wells and two water injector wells expected to be completed by the end of the year and gross production expected to increase to around 180,000 barrels of oil per day in early 2019," according to Tullow.
The company also expects its free cash flow - an important metric for firms - to be in the region of $700m (€619m) for the full year.
It expects its net debt to be $2.8bn at the year-end. Tullow has also slightly reduced its capital expenditure expectations for the full year, from $460m to $430m.
Shares in Tullow were unchanged yesterday.