25th Apr 2019 08:42
LONDON (Alliance News) - Tullow Oil PLC on Thursday said first quarter production missed expectations due to now-resolved technical issues in Ghana.
Tullow produced 84,600 barrels of oil equivalent per day on average during the first quarter of 2019, below expectations.
As a result, it has lowered 2019 guidance to between 90,000 barrels and 98,000 barrels of oil a day on average, from 93,000 barrels to 101,000 barrels expected before.
Tullow is now producing around 95,000 barrels a day on average, and this is expected to rise to 100,000 barrels a day once new wells in Ghana come onstream.
The technical issues in Ghana, Tullow said, were gas compression constraints on the Jubilee field during February as well as a delay in getting the Enyera-10 well into production on the TEN field.
Elsewhere, Tullow is preparing to drill two wildcat wells on the Orinduik block in June in Guyana, targeting the Jethro and Joe prospects.
In Kenya, Tullow hopes for an investment decision by the end of 2019, though concedes this is ambitious, while it is also making good progress in Uganda.
Tullow is holding its annual general meeting in London Thursday, with shareholders set to vote on its first dividend since 2014. In February, at the time of 2018 results, Tullow resumed dividend payment by declaring 4.8 US cents payout for the year.
This was worth USD67 million, and dividends going ahead are expected to be USD100 million a year at least.
Tullow shares were 2.4% lower on Thursday at a price of 234.40 pence each.
Related Shares:
Tullow Oil