Strengthened balance sheet; increased Jubilee production, Uganda farm-down proceeds, debt re-financing and reserve additions
Significant ongoing portfolio management; focus on high value oil and early monetisation
Exploration & Appraisal campaigns to target 1 billion boe with over 40 wells planned for 2013
11 January 2013 - Tullow Oil plc (Tullow) issues this Operational Update summarising key activities since the Interim Management Statement on 14 November 2012 and a Trading Statement in respect of its financial year to 31 December 2012. This is in advance of the Group's Full Year Results, which are scheduled for release on Wednesday 13 February 2013. The information contained herein has not been audited and may be subject to further review.
COMMENTING TODAY, AIDAN HEAVEY, CHIEF EXECUTIVE SAID:
"Tullow accomplished much in 2012. We have had significant exploration success in establishing Kenya as a new hydrocarbon province and continued to add to and mature our exploration portfolio. Jubilee production issues were successfully and cost effectively resolved and gross production from the field is now around 110,000 bopd. Commercial reserves have also increased, benefitting from the submission of the TEN development plan in Ghana. We also significantly strengthened our balance sheet in 2012 by concluding the Uganda farm-down and by refinancing and extending the maturity of our $3.5bn reserves based lending facility.
Tullow continually reviews its portfolio to ensure that it allocates capital appropriately to enhance shareholder value. We accelerated this process after the farm-down in Uganda when we conducted a thorough review of the exploration assets carried on our balance sheet. In 2012 we further reshaped the portfolio with entry into five new countries, including highly prospective licences in the North Atlantic through the purchase of Spring Energy. Our increasing focus on light oil exploration has led to our planned disposal of our Asian and Southern North Sea gas production assets.
This continuing process of portfolio management, alongside increased Jubilee production and a strengthened balance sheet, provides a strong base from which our exploration-led growth strategy can continue to deliver. Tullow is now well positioned for a very successful 2013 and growth beyond."
