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Tullow Oil upbeat in AGM trading update

26 April 2017 07:28

Tullow Oil said the period Jan. 1 to April 26 had been an exceptionally busy one for the company as it agreed to farm down assets to partners in Uganda, made substantial board changes and launched a $750m rights issue.

"We have also been working hard on moving towards Full Field Development in both Uganda and Kenya and have made good progress on the Jubilee Turret Remediation Project and optimising production from the TEN field," said CEO Aidan Heavey in a statement.

"Consequently, as I hand over my role as CEO to Paul McDade, I am confident that Tullow has the financial and operational flexibility to prosper in 2017 and beyond."

HIGHLIGHTS:

- Paul McDade appointed CEO to replace Aidan Heavey, Tullow's founder, who becomes Chairman; Simon Thompson and Ann Grant retire from the Board; Jeremy Wilson appointed Senior Independent Director. These appointments will become effective, subject to shareholder approval, after today's Annual General Meeting.

- Successful $750 million fully underwritten Rights Issue launched on 17 March 2017; approved at General Meeting on 5 April 2017; fully paid new ordinary shares commenced trading on 25 April 2017.

- Uganda deal to deliver upfront cash and deferred payments to cover upstream and pipeline capex to first oil and beyond.

- Six monthly RBL redetermination successfully completed in March 2017; RCF maturity extension to April 2019 agreed in February 2017; net debt of $4.6 billion, headroom and free cash totalling $1.2 billion as of 31 March 2017 prior to receipt of Rights Issue proceeds.

- West Africa net working interest oil production, including production-equivalent insurance payments, averaged 85,700 bopd for the first quarter 2017 and guidance remains between 78,000 and 85,000 bopd for the full year.

- Offshore Ghana, Jubilee FPSO Interim Spread Mooring completed in February; TEN field performed in line with expectations.

- Successful exploration and appraisal drilling and water injectivity testing campaign ongoing in Kenya with new exploration wells planned; FEED for full field development scheduled to start in the second half of 2017.

- Araku exploration well, offshore Suriname, on track to commence drilling in Q4 2017; seismic surveys in Jamaica and Uruguay completed; further seismic surveys in Guyana and Mauritania commence in May.

Story provided by StockMarketWire.com

Related Company: TLW

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