Tullow Oil books $415m exploration write-off

Oil and gas producer expects strong first half revenues in the region of $1.3 billion

The Kingfisher well, Block 3A, jointly owned by Tullow Oil  and Heritage Oil,   in Uganda.

The Kingfisher well, Block 3A, jointly owned by Tullow Oil and Heritage Oil, in Uganda.

Wed, Jul 2, 2014, 08:55

Tullow Oil has said it expects to deliver strong first half revenue and gross profit, but that it will book a $415 million (€306 million) exploration write-off charge after disappointing drill results in Mauritania, Ethiopia and Norway.

The poor drill results, combined with licence relinquishments, will lead to a net exploration write off of $415 million for the first half of the year, Tullow said. Post-tax, this will amount to $305 million of which $150 million relates directly to 2014 wells.

Providing guidance in advance of its half year results on July 30th, Tullow said it expects revenue of $1.3 billion and gross profit of $650 million.

The oil and gas producer maintained its full-year production guidance of 79,000-85,000 barrels of oil equivalent per day.