Tullow hitting its stride

All of the financials are in line with expectations this year at Tullow, while the oil group remains on target to deliver average net production of 80,000 to 84,000 barrels of oil equivalent per day (boepd) for the full year.

The group's interim management statement covering the second half of the year said operational and financial performance has remained strong.

In Ghana, the production capacity of the Jubilee field has been ramped up and is expected to exceed 90,000 bopd (gross) by the end of the year, while in Kenya, the second exploration well in the Lockichar Basin has successfully encountered oil, which has further de-risked the exploration prospects in the basin. Additional exploration drilling and testing results across Tullow's Kenyan and Ehtiopian assets are expected before the end of the year.

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Forecast capital expenditure for 2012 remains in the region of $2.0bn. As of October 31st, net debt is around $0.9bn and unused debt capacity is in the region of $2.2bn.

"Growing production and cash flow from the Jubilee field continues to strengthen Tullow's financial base as we look forward to further significant exploration and development programmes in 2013," the group said.

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