Tullow Oil plc (LON:TLW) boasted of “another period of very solid delivery” and said that all its fields are producing in line with expectations – with full-year production guidance in the range of 87,000 to 91,000 bopd.
The oiler forecasts US$700mln of full-year free cash flow for the year, including US$200mln of proceeds from the farm-out of a stake in the group’s Uganda assets.
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It is expected that the Uganda farm-out will complete ‘around year-end’ 2018, setting the project up for an anticipated final investment decision in the first half of 2019.
Net debt is expected to reduce to around US$2.8bn from US$3.5bn by year end.
"This has been another period of very solid delivery from Tullow against the backdrop of continued volatility in the oil price,” said Paul McDade, Tullow chief executive.
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.
Having taken the time to lay strong foundations for our business, embed a financially disciplined culture across the Group and repair our balance sheet, we are now focused on delivering growth and returns to our shareholders."