Oil & Gas Corporate News
Tullow Oil (LON:TLW) (TLW, 1460p, ? (2.21%)) announced its annual results. Working interest production averaged 58,100 bopd; 3-year reserves replacement ratio of 250%. Operating cash flow before working capital movements was US$762 million, 30% higher than 2009. Operating profit amounted to US$234.6 million, an increase of 55%. A 40-well E&A campaign is planned for 2011. Balance sheet strengthened during the year through additional debt and equity totalling US$2.35 billion. Operational highlights include Jubilee production offshore Ghana avhieved in November 2010, some 40 months after discovery and important Equatorial Atlantic discoveries: Enyenra & Teak offshore Ghana; Mercury offshore Sierra Leone. Tullow achieved 83% E&A success ratio, finding hydrocarbons in 24 out of 29 wells drilled during the year. TLW?s strategy is to maintain: a US$500 ? US$700 million per year exploration programme; accelerate development in Uganda with new partners Total and CNOOC; and continue with Jubilee Phase 1a development.
Encore Oil (LON:EO.) (EO/, 122.75p, ? (0.20%)) announced its interim results for the six months ended 31 December 2010. Highlights are: One appraisal of Catcher and two appraisals of Cladhan during the period, all of which discovered further hydrocarbons; Oil discovery at Varadero and post period end, oil and gas discovery at Catcher North; GBP31 million cash and debt free; Award of two new licences in the UKCS 26th Seaward Licensing Round; Licence extensions granted for Tudor Rose, Merrow and Spaniards; and two wells currently drilling; an exploration well at Burgman and an appraisal well at Cladhan. Also, the Board is currently examining the option of floating a newly formed company containing the company?s exploration assets on AIM, with EO retaining a significant shareholding. The new company would raise the necessary capital to progress a high impact exploration drilling programme. It would be expected that exploration of these assets would be at higher working equity levels than EO would have retained, and it is expected that this would also allow the retention of operatorship control which would likely have been lost via individual farm-outs. EO would remain exposed to any success through significant shareholding in the new company.
Range Resources (RRL, 23.5p, ? (4.44%)) announced that production on the Russell Bevly # 1 well has begun to stabilize following the successful fracture stimulation of the lower two zones. The production rates being achieved are consistent…
