Tullow Oil PLC (LON:TLW) shares were on the front foot in Wednesday morning deals as it reported gross production slightly ahead of expectations in Ghana.
Group production measured 61,200 bopd in the first half of 2021 and full year guidance was revised to 55,000 to 61,000 bopd.
Production averaged 70,600 barrels of oil per day gross (25,100 bopd net) from the Jubilee assets whilst the TEN fields yielded 37,000 bopd (17,400 bopd net).
“Our producing fields in West Africa are performing well and we have successfully started our drilling programme in Ghana,” said chief executive Rahul Dhir.
“This strong operational performance, combined with continued capital discipline, improved market conditions and asset sales in Gabon and Equatorial Guinea, supported our transformational debt refinancing.
“Tullow now has a strong financial footing and we are making very good progress in delivering on our highly cash generative business plan and continuing to reduce our debt."
Dhir said that Tullow made excellent operational and financial progress during the half year period. It successfully completed a debt refinancing and the divestment of assets in Equatorial Guinea and Gabon.
The company now expects to report its half year results on a going concern basis with no material uncertainty.
Revenue is expected to be around US$700mln, with an average oil sale price of US$58 per barrel. First half cash flow meanwhile is expected to be around US$200mln.
Net debt is expected to have lowered to US$2.3bn whilst liquidity and free cash is seen at around US$700mln.
Tullow will report around US$100mln capital expenditure.
In London, Tullow shares were up 1.4p or 2.73% changing hands at 52.62p each.
It will report its first half results on September 15.