PRODUCT PROFILE

Latest Dublin Prices

Tullow Oil to spend USD2bn this year

Wednesday, November 14 10:35:20

Irish based oil and gas explorer, Tullow Oil, this morning said that it expects to have spent USD2 billion on its global drilling prospects by the end of this year with year to date financials in line with expectations.

As of Oct. 31, net debt is approximately $0.9 billion and unutilised debt capacity is $2.2 billion, it said in an interim management statement.

Last month, Tullow finalized arrangements for the refinancing of its $3.5 billion Reserves Based Lending credit facilities, extending final maturity from 2015 to 2019.

Tullow's operational and financial performance in the second half of 2012 to date has continued to be strong.

In Ghana, Jubilee field production capacity has been enhanced and is expected to exceed 90,000 bopd (gross) by year-end, while the Plan of Development for the TEN project has now been submitted to the Government of Ghana.

In Kenya, the second exploration well in the Lockichar Basin has successfully encountered oil, further de-risking the basin. Additional exploration drilling and testing results across our significant Kenyan and Ethiopian acreage position are expected before the end of the year.

The Zaedyus-2 well is currently drilling offshore French Guiana following up on last year's basin opening discovery.

Tullow said that it continues to enhance its exploration portfolio and widen its global footprint by adding new offshore licences in Mozambique, Uruguay and Greenland.

The Group remains on track to deliver average net production of 80,000 to 84,000 boepd for the full year.

During the period, Tullow also finalised arrangements for the refinancing of its Reserves Based Lending credit facilities, extending final maturity to 2019.

"Tullow's exploration-led growth strategy continues to deliver outstanding results for the Group. Exploration success in Kenya is opening up another new basin in East Africa with major upside potential. Growing production and cashflow 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 statement said.