Tullow Oil boosts production outlook on bumper first half.


Tullow Oil confirmed production was on track to hit the upper end of its guidance range on Monday, following a strong first half.

Tullow Oil

Source: Sharecast

The independent exploration and production firm said working interest oil and gas production in the six months to 30 June was 43,700 barrels of oil equivalent per day (boepd), while a surge in the oil price helped fuel a jump in revenue, to $496m from $411m a year earlier. The realised oil price before hedging spiked at $95 per barrel, up from $71.40.

The pre-tax loss widened, however, to $101m from $80m, on the back of one-off refinancing transaction fees.

Ian Perks, chief executive, called it an "outstanding" operational performance.

He continued: "We are building on this momentum as we seek to create further value through our next drilling campaign in 2027-28, and delivery of other near-term opportunities. These opportunities have delivered material reserves growth, with approximately 380% reserves replacement in the first half of this year."

Looking to the second-half, and Tullow - which has a number of core producing assets in Ghana - said production was expected to come in at the high end of its guidance range, for 34,000 to 42,000 boepd. The firm has already boosted forecasts for full-year free cash flow to $170m to $250m, at $70 to $100 per barrel, on the back of higher oil prices and the strong production performance.

Perks concluded: "The longer-term outlook for the business remains healthy.

"Supported by our strengthened financial position disciplined capital allocation and a supportive oil price environment, we are increasingly confident in our ability to unlock the full value of our assets and deliver material cash flow."

As at 1115 BST, the stock was trading up 2% at 21.90p.

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ISIN: GB0001500809
Exchange: London Stock Exchange
Sell:
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Change: -0.30 ( -1.39 %)
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