25th Apr 2018 09:18
LONDON (Alliance News) - FTSE 250-listed Tullow Oil PLC on Wednesday said it is continuing to make strong progress as production so far in 2018 increased slightly year-on-year.
Tullow told its annual general meeting that net production across its portfolio averaged 87,700 barrels of oil a day from the start of January 1 to April 25. This compares to 85,700 barrels a day for the period January 1 to April 26 the year before.
Production guidance for 2018 remains at between 82,000 and 90,000 barrels of oil a day.
Tullow has producing assets at Ghana's Jubilee and TEN fields, as well as gas fields in the UK. It also has development assets in Kenya and Uganda, as well as other new ventures in the Ivory Cost, Mauritania, Namibia, as well as South America.
It has begun drilling its first new production well on the Ntomme field at TEN, and it has completed successfully the first shut-down to stabilise turret bearing at the floating production storage and offloading vessel at Jubilee.
In Kenya, progress towards a final investment decision continues, it said, and in Uganda its farm-down to Total SA and China National Offshore Oil Corp awaits government approval.
Tullow's capital expenditure guidance for 2018 remains unchanged at USD460.0 million, compared to USD225.0 million in 2017. Of this, Uganda capex of USD110.0 million should be repaid once it completes the farm-down.
Chief Executive Paul McDade said: "Tullow continues to make strong progress in 2018 and we continue to generate free cash flow from our high-return production assets in West Africa.
The drilling programme is now under way at the TEN and Jubilee fields in Ghana and we remain on track to deliver on our existing production guidance."
Tullow shares were down 4.9% on Wednesday 226.90 pence each.
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