TIDMTLW
RNS Number : 5156G
Tullow Oil PLC
16 November 2022
TULLOW OIL PLC
NOVEMBER Trading Statement & Operational Update
16 NOVEMBER 2022 - Tullow Oil plc (Tullow) issues the following
statement to provide an update on its ongoing operations and
expectations for the full year. The information contained herein
has not been audited and may be subject to further review and
amendment.
Rahul Dhir, Chief Executive Officer, Tullow Oil plc, commented
today:
"In the first 10 months of the year, Tullow has delivered on its
operating and financial targets as we successfully deliver our
business plan despite the disappointment of the two strategic
Ntomme wells. Our producing assets continue to perform well, in
line with expectations, and as a result we have narrowed our full
year production guidance to 61-62 kboepd. We continue to strengthen
our balance sheet, with free cash flow guidance for 2022 increased
to $250 million and gearing on track to be less than 1.5 times by
the end of the year."
OPERATIONAL UPDATE
Production
-- Group net working interest production averaged c.61.8 kboepd
to end October 2022, in line with guidance.
-- Full year production guidance for 2022 narrowed from 60-64 kbopd to 61-62 kbopd.
Group average working interest production FY 2022 guidance (kboepd)
=========================================== ==========================
Ghana 45
=========================================== ==========================
Jubilee 32
=========================================== ==========================
TEN 13
=========================================== ==========================
Non-operated portfolio 17
=========================================== ==========================
Total production 61-62
=========================================== ==========================
Jubilee
-- Jubilee production to end October was c.32.1 kbopd net to Tullow (gross c.84.5 kbopd).
-- Four wells have been brought onstream this year; two new
water injectors, a new producer and a previously drilled water
injector.
-- Two new Jubilee South East production wells are planned to be
drilled before year end, and a further two wells (one producer and
one water injector) are planned to be drilled in the first half of
2023; these four wells are expected to be brought onstream in 2023
and are expected to add material production in 2023 and beyond.
-- Continued strong operating performance since Tullow took over
Operations & Maintenance of the Jubilee FPSO, with uptime of
over 98%.
TEN
-- TEN production to end October was c.12.6 kbopd net to Tullow (gross c.23.8 kbopd).
-- Two wells have been brought onstream this year; a new Enyenra
producer and a previously drilled Enyenra water injector, helping
to offset natural decline in the Enyenra field.
-- The second of the two wells drilled in the Ntomme riser base
area (Nt11-P) found poorer than expected reservoir quality and did
not encounter economically developable resources.
-- The Joint Venture (JV) partners continue to evaluate the
results of these wells to optimise future drilling plans on the TEN
fields.
Non-operated
-- Production to end October from the non-operated portfolio was
c.17.1 kboepd net to Tullow, and guidance for the full year remains
c.17 kboepd.
-- In Gabon, the Wamba discovery well has been tied back to the
Tchatamba facilities in September and will now undergo a long-term
well test. The well is currently producing c.2 kbopd gross, of
which Tullow has a 25% share.
-- In Côte d'Ivoire, a 45 day shutdown of the FPSO at the Espoir
field is underway to carry out cargo tank maintenance and
remediation work, which is required for vessel class certification.
Tullow continues to engage with the operator, CNR International, to
define the appropriate longer-term course of action for the
FPSO.
Kenya
-- The process to secure a strategic partner for the development
project in Kenya continues to make progress.
-- Tullow and its JV partners are seeking an extension of the
Field Development Plan (FDP) review period, while constructive
discussions with the Energy and Petroleum Regulatory Authority of
Kenya and the Ministry of Energy and Petroleum are ongoing.
Exploration
-- In Côte d'Ivoire Block CI-524, Tullow, together with JV
partner PetroCi, continues preparations for an exploration well.
CI-524 presents a unique opportunity to realise operational
synergies due to its proximity to Tullow's producing fields and to
leverage Tullow's experience of the Tano Basin.
-- In Gabon, Tullow, together with JV partner Perenco, have
focused on maturing the prospective resource base within the Simba
licence, where several low-risk and compelling investment options
adjacent to infrastructure have been high-graded for near term
drilling programmes.
FINANCIAL UPDATE
-- Full year Group capital investment and decommissioning
expenditure guidance has been reduced to c.$360 million and c.$80
million, respectively, following deferral of activity and continued
focus on cost reductions.
-- As a result, full year free cash flow [1] guidance has been
increased to c.$250 million, subject to year-end working capital
movements, assuming an average oil price of $95/bbl for November
and December.
-- Balance sheet strengthening is on track to achieve cash
gearing [2] of less than 1.5x by year end.
Capital markets update
A number of the Group's strategic and operational initiatives
remain ongoing and are expected to evolve throughout the coming
months. As a result, Tullow has decided to defer its previously
announced Capital Markets Update until 2023, with a revised date to
be confirmed, where it will be able to provide an update on the
company's strategy and outlook to investors.
CONTACTS
Tullow Oil plc Camarco
(London) (London)
(+44 20 3249 9000) (+44 20 3781 9244)
Robert Hellwig Billy Clegg
Matthew Evans Georgia Edmonds
Rebecca Waterworth
==================== ====================
Notes to editors
Tullow is an independent oil & gas, exploration and
production group which is quoted on the London and Ghanaian stock
exchanges (symbol: TLW) and is a constituent of the FTSE250 index.
The Group has interests in over 30 exploration and production
licences across eight countries. In March 2021, Tullow committed to
becoming Net Zero on its Scope 1 and 2 emissions by 2030. For
further information, please refer to our website at
www.tullowoil.com .
Follow Tullow on:
Twitter: www.twitter.com/TullowOilplc
YouTube: www.youtube.com/TullowOilplc
Facebook: www.facebook.com/TullowOilplc
LinkedIn: www.linkedin.com/company/Tullow-Oil
[1] Free cash flow before debt amortisation and including a $75
million payment from TotalEnergies following Ugandan parliamentary
approval of the Uganda Final Investment Decision (FID), a payment
of $76 million to HiTec Vision in relation to the purchase of
Spring Energy in 2013 and total consideration of $126 million for
the pre-emption related to the sale of Occidental Petroleum's
interest in the Jubilee and TEN fields in Ghana to Kosmos
Energy.
[2] Cash gearing is defined as net debt to EBITDAX.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTUVABRUWUAAAA
(END) Dow Jones Newswires
November 16, 2022 02:00 ET (07:00 GMT)
Tullow Oil (LSE:TLW)
Historical Stock Chart
From Mar 2024 to Apr 2024
Tullow Oil (LSE:TLW)
Historical Stock Chart
From Apr 2023 to Apr 2024
