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Tullow Oil says it is on-track to hit production target

Published: 09:49 25 Apr 2018 BST

oil and gas operations
Tullow is spending US$460mln in capex this year.

Tullow Oil PLC (LON:TLW) told investors that it remains on track to deliver on its current production guidance.

In a statement, ahead of the company’s AGM, the company said first quarter net oil production averaged 87,700 barrels of oil per day.

Tullow’s production guidance remains at 82,000 to 90,000 barrels of oil per day.

READ: Tullow Oil set for ‘rapid balance sheet strengthening’

The company retained its 2018 capital spending forecast at US$460mln, while it confirmed that net debt reduced to US$3.4bn, leaving it with US$1bn of headroom and free cash.

Paul McDade, Tullow chief executive, said: "Tullow continues to make strong progress in 2018 and we continue to generate free cash flow from our high-return production assets in West Africa.

“The drilling programme is now under way at the TEN and Jubilee fields in Ghana and we remain on track to deliver on our existing production guidance.”

At the same time, the company is working to advance new oil fields towards development and is also investing in exploration, with wildcat drilling starting offshore Namibia in the third quarter.

“In East Africa, our Ugandan and Kenyan developments are on track for Final Investment Decisions in 2018 and 2019 respectively and we are preparing for the start of our multi-year exploration programme across our diverse portfolio of exploration prospects in Africa and South America,” McDade added.

“The progress we have made is due to the hard work and financial discipline of the team and the support of our shareholders, allowing us to focus on growing our business and delivering returns."

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