Tullow Oil expects revenues in the first half of 2012 to set a new record and said that it remains well-placed for continued success for the rest of the year.
Revenue in the six months to June 30th is estimated to be $1.15bn, up from $1.06bn the year before.
Group working interest production in the six-month period averaged 77,400 barrels of oil equivalents per day (boepd), of which 54,200 boepd came from west and north Africa and 23,200 boepd came from Europe, South America and Asia.
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Group working interest production is expected to average 80,000-84,000 boepd for the full year and is forecast to ramp up to an exit rate of over 90,000 boepd by the year end.
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It has had a 65% exploration and appraisal success ratio in the year to date.
During the first half, Tullow completed a $2.9bn farm-down in Uganda and reported good progress across its developments projects in both Ghana and Uganda. The on-going remediation of the Jubilee field is progressing well and significant exploration wells are planned for the East African Rift basins, the West African Transform Margin and the twin basins in South America in the second half of 2012, the group said.
The Ugandan farm-down proceeds are said to have "transformed" the balance sheet; the pre-tax profit on disposal was around $700m.
The group spent $0.9bn in capital expenditure in the first half and says it remains on track to spend $2.0bn for 2012 as a whole. Net debt totalled $0.7bn at June 30th.
"Tullow's industry-leading exploration success has continued in the first half of 2012 with a major discovery in Kenya, the fourth new basin the group has opened in five years," said Chief Executive Aidan Heavey.
"With an exciting programme ahead, Tullow is well placed for continued success over the remainder of the year," he said.
BC
