'Excellent' first half for Tullow Oil

Exploration firm Tullow Oil this morning reported an “excellent” first half of the year, as it continues to deliver “outstanding results” from its high impact, exploration-led growth strategy.

Exploration firm Tullow Oil this morning reported an “excellent” first half of the year, as it continues to deliver “outstanding results” from its high impact, exploration-led growth strategy.

According to the firm, it has now completed the $2.9 billion farm down to CNOOC and Total in Uganda, and is progressing with exploration, appraisal and development activities.

This farm-down and strong production performance has given Tullow "a firm financial foundation" to carry out its extensive work programmes in Africa and the Atlantic margins.

In Kenya for example, the Ngamia-1 well onshore has opened a new basin and de-risked significant prospectivity in the region, while in Ghana, remedial work on the Jubilee production wells is progressing well. Further potential basin-opening exploration campaigns have also recently commenced in Guyana and Côte d'Ivoire.

In the year to May 16th, Tullow noted that its financials “are in line with expectations”, with capital expenditure for 2012 expected to be in the region of $2.0 billion. As of April 30th, the company’s net debt was approximately $0.5 billion and un-utilised debt capacity was approximately $2.7 billion.

Looking ahead, Tullow is confident that, having delivered basin-opening exploration success already this year, and with key developments progressing well, it will deliver further significant growth in 2012.