EXPLORATION GROUP Tullow Oil told shareholders yesterday that it expects production from its wells to run at between 70,000 and 86,000 barrels a-day this year.
Tullow issued a statement ahead of its annual general meeting in London, saying that its financial performance so far this year has been in line with expectations. It remains on track to deliver total net production of between 70,000 and 86,000 barrels of oil a-day this year.
Tullow is focused on exploration and production in Africa, South America, Europe and Asia.
Net debt at the end of April stood at $500 million, compared with $2.1 billion on the same date in 2011. In February, the company completed the $2.9 billion sale of two thirds of its interests in Uganda’s Lake Albert rift valley to its partners, French giant, Total and Chinese multi-national Cnooc.
Under the terms of the deal, agreed in 2010, Tullow will focus on oil and exploration and production from the licence area, while its partners will develop the infrastructure needed to bring the oil to market.
The field is expected to produce up to 200,000 barrels a-day at its peak and small-scale production could begin there next year.
Tullow said yesterday that the Ugandan deal and a strong production performance will give it a financial foundation for proposed work programmes in Africa and other regions.
The group expects to step up exploration activity in Kenya following its initial success with the Ngamia-1 well, where it discovered oil in March. The group will also begin drilling in French Guyana, where last year it made the potentially significant Zaedyus oil discovery. The work will include appraising that find.
Tullow said it was confident that would deliver further growth in 2012.
