REG - Tullow Oil PLC - 2015 Full Year Financial Results <Origin Href="QuoteRef">TLW.L</Origin> - Part 2
10/02/2016 07:10
- Part 2: For the preceding part double click ID:nRSJ5863Oa
Notes 2015$m 2014$m
Cash flows from operating activities
Loss before taxation (1,297.3) (2,047.4)
Adjustments for:
Depletion, depreciation and amortisation 580.1 621.8
Loss on disposal 56.5 482.4
Goodwill impairment 53.7 132.8
Exploration costs written off 9 748.9 1,657.3
Impairment of property, plant and equipment 10 406.0 595.9
Provision for onerous service contracts 13 185.5 -
Provision for inventory 22.2 -
Decommissioning expenditure 13 (40.8) (20.4)
Share-based payment charge 48.7 39.5
Loss/(gain) on hedging instruments 58.8 (50.8)
Finance revenue (4.2) (9.6)
Finance costs 149.0 143.2
Operating cash flow before working capital movements 967.1 1,544.7
(Increase)/decrease in trade and other receivables (26.5) 29.9
Decrease in inventories 9.0 61.0
Increase/(decrease) in trade payables 366.5 (119.6)
Cash flows from operating activities 1,316.1 1,516.0
Income taxes received / (paid) 34.9 (34.2)
Net cash from operating activities 1,351.0 1,481.8
Cash flows from investing activities
Proceeds from disposals 55.8 21.3
Purchase of intangible exploration and evaluation assets (647.6) (1,255.1)
Purchase of property, plant and equipment (1,464.8) (1,098.3)
Interest received 4.2 4.6
Net cash used in investing activities (2,052.4) (2,327.5)
Cash flows from financing activities
Net proceeds from issue of share capital 3.5 3.3
Debt arrangement fees (25.7) (22.2)
Repayment of bank loans (191.8) (1,202.1)
Drawdown of bank loan 1,168.8 1,749.8
Issue of senior loan notes - 650.0
Repayment of obligations under finance leases (3.3) (1.1)
Finance costs paid (203.6) (172.9)
Dividends paid - (182.3)
Distribution to non controlling interests (2.4) (15.0)
Net cash generated by financing activities 745.5 807.5
Net increase/(decrease) in cash and cash equivalents 44.1 (38.2)
Cash and cash equivalents at beginning of year 319.0 352.9
Cash transferred to held for sale - 16.2
Foreign exchange loss (7.4) (11.9)
Cash and cash equivalents at end of year 355.7 319.0
Notes to the preliminary financial statements
Year ended 31 December 2015
1. Basis of Accounting and Presentation of Financial Information
Whilst the financial information in this preliminary announcement has been
prepared in accordance with International Financial Reporting Standards (IFRS)
and International Financial Reporting Interpretation Committee (IFRIC)
interpretations adopted for use by the European Union, with those parts of the
Companies Act 2006 applicable to companies reporting under IFRS and with the
requirements of the United Kingdom Listing Authority (UKLA) Listing Rules,
this announcement does not contain sufficient information to comply with IFRS.
The Group will publish full financial statements that comply with IFRS in
March 2016.
The financial information for the year ended 31 December 2015 does not
constitute statutory accounts as defined in sections 435 (1) and (2) of the
Companies Act 2006. Statutory accounts for the year ended 31 December 2014
have been delivered to the Registrar of Companies and those for 2015 will be
delivered following the Company's annual general meeting. The auditor has
reported on these accounts; their reports were unqualified, did not include a
reference to any matters to which the auditor drew attention by way of
emphasis of matter and did not contain a statement under section 498 (2) or
(3) of the Companies Act 2006.
The accounting policies applied are consistent with those adopted and
disclosed in the Group's financial statements for the year ended 31 December
2014. There have been a number of amendments to accounting standards and new
interpretations issued by the International Accounting Standards Board which
were applicable from 1 January 2015, however these have not had a material
impact on the accounting policies, methods of computation or presentation
applied by the Group.
2. Loss per Share
The calculation of basic loss per share is based on the loss for the year
after taxation attributable to equity holders of the parent of $1,034.8
million (2014: $1,555.7 million, loss) and a weighted average number of shares
in issue of 911.3 million (2014: 910.1 million).
The calculation of diluted loss per share is based on the loss for the year
after taxation as for basic earnings per share. The number of shares
outstanding, however, is adjusted to show the potential dilution if employee
share options are converted into ordinary shares. The weighted average number
of ordinary shares is increased by 25.1 million (2014: 13.3 million) in
respect of employee share options, resulting in a diluted weighted average
number of shares of 936.4 million (2014: 923.4 million).
3. Dividends
In view of current capital allocation priorities, the Board is again
recommending that no dividend is paid. At a time when Tullow is focusing on
financial flexibility and cost reductions, the Board believes that Tullow and
its shareholders are better served by retaining these funds in the business.
4. 2015 Annual Report and Accounts
The Annual Report and Accounts will be mailed on 15 March 2016 only to those
shareholders who have elected to receive it. Otherwise, shareholders will be
notified that the Annual Report and Accounts is available on the website
(www.tullowoil.com). Copies of the Annual Report and Accounts will also be
available from the Company's registered office at Building 9, Chiswick Park,
566 Chiswick High Road, London W4 5XT.
5. Annual General Meeting
Tullow's AGM will take place on 28 April 2016 at 12pm at Tullow Oil plc,
Building 9 Chiswick Park, 566 Chiswick High Road, London, W4 5XT.
6. Segmental reporting
During 2015 the Group reorganised its operational structure so that the
management and resources of the business are better aligned with the delivery
of the business objectives. As a result the information reported to the
Group's Chief Executive Officer for the purposes of resource allocation and
assessment of segment performance has changed to focus on three new business
delivery teams comprising: West Africa (including non-operated producing
European assets), East Africa and New Ventures. Therefore the Group's
reportable segments under IFRS 8 are West Africa; East Africa; and New
Ventures. The following tables present revenue, profit and certain asset and
liability information regarding the Group's reportable business segments for
the years ended 31 December 2015 and 31 December 2014. The table for the year
ended 31 December 2014 has been restated to reflect the new reportable
segments of the business.
West Africa East Africa New Ventures Unallocated Total
$m $m $m $m $m
2015 1,606.6 - - - 1,606.6
Sales revenue by origin
Segment result (189.7) (28.3) (461.2) (123.6) (802.8)
Loss on disposal of other assets (56.5)
Unallocated corporate expenses (234.4)
Operating Loss (1,093.7)
Loss on hedging instruments (58.8)
Finance revenue 4.2
Finance costs (149.0)
Loss before tax (1,297.3)
Income tax credit 260.4
Loss after tax (1,036.9)
Total assets 7,510.5 2,601.6 1,011.2 224.5 11,347.8
Total liabilities (3,085.8) (341.4) (331.8) (4,414.1) (8,173.1)
Other segment information
Capital expenditure:
Property, plant and equipment 1,245.0 0.5 1.5 11.2 1,258.2
Intangible exploration and evaluation assets 23.1 399.6 203.6 - 626.3
Depletion, depreciation and amortisation (553.2) (1.1) (1.2) (24.6) (580.1)
Impairment of property, plant and equipment (406.0) - - - (406.0)
Exploration costs written off (380.0) (28.3) (340.6) - (748.9)
Goodwill impairment - - (53.7) - (53.7)
6. Segmental reporting contd.
West Africa East Africa New Ventures Unallocated Total
$m $m $m $m $m
2014 2,205.2 - 7.7 - 2,212.9
Sales revenue by origin
Segment result 371.8 0.8 (1,656.1) (6.3) (1,289.8)
Loss on disposal of oil and gas assets (482.4)
Unallocated corporate expenses (192.4)
Operating loss (1,964.6)
Gain on hedging instruments 50.8
Finance revenue 9.6
Finance costs (143.2)
Loss before tax (2,047.4)
Income tax credit 407.5
Loss after tax (1,639.9)
Total assets 7,454.2 2,354.7 1,397.3 215.5 11,421.7
Total liabilities (3,285.9) (267.6) (588.5) (3,259.4) (7,401.4)
Other segment information
Capital expenditure:
Property, plant and equipment 1,463.1 1.6 11.0 59.6 1,535.3
Intangible exploration and evaluation assets 181.9 555.8 667.8 - 1,405.5
Depletion, depreciation and amortisation (577.1) (0.9) (1.2) (42.6) (621.8)
Impairment of property, plant and equipment (592.4) - (3.5) - (595.9)
Exploration costs written off (134.6) 0.8 (1,523.5) - (1,657.3)
Goodwill impairment - - (132.8) - (132.8)
Unallocated expenditure and net liabilities include amounts of a corporate
nature and not specifically attributable to a reportable segement. The
liabilities comprise the Group's external debt and other non attributable
corporate liabilities.
7. Operating loss
Notes 2015$m 2014$m
Cost of sales
Operating costs 406.3 511.5
Depletion and amortisation of oil and gas assets 10 551.2 572.2
Underlift, overlift and oil stock movements (1.5) 27.1
Share-based payment charge included in cost of sales 0.8 1.6
Other cost of sales 58.5 4.3
Total cost of sales 1,015.3 1,116.7
Administrative expenses
Share-based payment charge included in administrative expenses 47.9 37.9
Depreciation of other fixed assets 10 28.9 49.6
Relocation costs associated with simplification project 5.9 -
Other administrative costs 110.9 104.9
Total administrative expenses 193.6 192.4
Restructuring costs 13 40.8 -
8. Taxation on loss on ordinary activities
a. Analysis of credit in period
The tax credit comprises:
2015$m 2014$m
Current tax
UK corporation tax (3.5) (61.5)
Foreign tax 94.9 (70.0)
Total corporate tax 91.4 (131.5)
UK petroleum revenue tax (0.3) 4.8
Total current tax 91.1 (126.7)
Deferred tax
UK corporation tax 6.9 (199.7)
Foreign tax (354.0) (81.4)
Total deferred corporate tax (347.1) (281.1)
Deferred UK petroleum revenue tax (4.4) 0.3
Total deferred tax (351.5) (280.8)
Total tax credit (260.4) (407.5)
b. Factors affecting tax credit for period
The change in tax credit in 2015 is driven by deferred tax credits associated
with exploration write-offs of $276.5 million (2014: $397.9 million) and
impairments of $49.1 million (2014: $174.9 million).
The tax rate applied to profit on ordinary activities in preparing the
reconciliation below is the UK corporation tax rate applicable to the Group's
non-upstream UK profits.
The difference between the total current tax credit shown above and the amount
calculated by applying the standard rate of UK corporation tax applicable to
UK profits of 20% (2014: 21%) to the loss before tax is as follows:
2015$m 2014$m
Group loss on ordinary activities before tax (1,297.3) (2,047.4)
Tax on Group loss on ordinary activities at the standard UK corporation (259.5) (430.0)
tax rate of 20% (2014: 21%)
Effects of:
Expenses not deductible for tax purposes 212.4 287.0
Goodwill impairment 10.7 27.9
PSC income not subject to corporation tax (28.5) (5.9)
Net losses not recognised 15.8 104.7
Petroleum revenue tax (PRT) (4.4) 5.4
UK corporation tax deductions for current PRT 2.2 (3.3)
Utilisation of tax losses not previously recognised - (56.1)
Adjustments relating to prior years (14.9) (7.1)
Adjustments to deferred tax relating to change in tax rates (1.0) -
Income taxed at a different rate (297.3) (313.0)
Uganda capital gains tax 108.2 -
Tax incentives for investment (4.1) (17.1)
Group total tax credit for the year (260.4) (407.5)
8. Taxation on loss on ordinary activities contd.
The Group's profit before taxation will continue to arise in jurisdictions
where the effective rate of taxation differs from that in the UK. Furthermore,
unsuccessful exploration expenditure is often incurred in jurisdictions where
the Group has no taxable profits, such that no related tax benefit arises.
Accordingly, the Group's tax charge will continue to vary according to the
jurisdictions in which pre-tax profits and exploration costs written off
arise.
The Group has tax losses of $1,802.0 million (2014: $1,642.1 million) that are
available for offset against future taxable profits in the companies in which
the losses arose. Deferred tax assets have not been recognised in respect of
these losses as they may not be used to offset taxable profits elsewhere in
the Group. The Group has recognised $55.7 million in deferred tax assets in
relation to taxable losses (2014: $72.0 million); this is disclosed net of a
deferred tax liability in respect of capitalised interest.
No deferred tax liability is recognised on temporary differences of $8.5
million (2014: $21.2 million) relating to unremitted earnings of overseas
subsidiaries as the Group is able to control the timing of the reversal of
these temporary differences and it is probable that they will not reverse in
the foreseeable future.
Tax relating to components of other comprehensive income
During 2015 $42.3 million (2014: $91.0 million) of tax has been recognised
through other comprehensive income of which $43.2 million (2014: $89.5
million) is current and $0.9 million (2014: $1.5 million) is deferred tax
relating to charges on cash flow hedges arising in the year.
Current tax assets
As at 31 December 2015, current tax assets were $127.6 million (2014: $221.6
million) of which $55.0 million (2014: $155.9 million) relates to Norway,
where 78% of exploration expenditure is refunded as a tax refund in the
following year and $47.7 million (2014: $47.7 million) relates to a tax
overpayment in Ghana.
9. Intangible exploration and evaluation assets
2015$m 2014$m
At 1 January 3,660.8 4,148.3
Additions 626.3 1,405.5
Disposals (5.2) (26.8)
Amounts written off (748.9) (1,657.3)
Amounts written off previously classified held for sale - (5.1)
Write-off associated with Norway contingent consideration - (88.8)
Transfer to assets held for sale - (13.8)
Transfer to property, plant and equipment (63.6) -
Currency translation adjustments (69.4) (101.2)
At 31 December 3,400.0 3,660.8
Included within 2015 additions is $49.7 million of capitalised interest (2014:
$47.8 million). The Group only capitalises interest in respect of intangible
exploration and evaluation assets where it is considered that development is
highly likely and advanced appraisal and development is ongoing.
The below table provides a summary of the exploration costs written-off on a
pre-and post-tax basis by country.
Rationale for 2015 2015 2015 2015 2015 2014 2014 2014 2014
write-off Current year expenditurewritten off Prior year expenditure written off $m Post-tax Pre-tax Current year expenditurewritten off Prior year expenditurewritten off $m Post-tax Pre-tax
$m write off write off $m write off write off
$m $m $m $m
Côte d'Ivoire b 2.9 - 2.9 2.9 2.7 55.3 58.0 58.0
Ethiopia c 4.8 34.9 39.7 39.7 65.1 - 65.1 65.1
French Guiana c 0.3 - 0.3 0.3 (1.3) 344.4 343.1 363.4
Gabon a, b, c 3.5 8.5 12.0 21.3 26.9 6.4 33.3 54.0
Ghana b 0.4 - 0.4 0.4 0.5 19.9 20.4 20.4
Guinea c 6.0 54.3 60.3 60.3 - - - -
Greenland c 0.2 38.5 38.7 38.7 - - - -
Kenya a 28.3 - 28.3 28.3 0.6 - 0.6 0.6
Netherlands c - 185.7 185.7 371.3 - - - -
Norway a, b 11.3 8.9 20.2 92.2 28.1 52.3 80.4 366.6
Madagascar c 1.5 10.7 12.2 12.2 - - - -
Mauritania b 7.3 - 7.3 7.3 199.6 368.6 568.2 621.4
Mozambique b 4.6 - 4.6 4.6 (6.2) - (6.2) (6.2)
Suriname a 27.8 1.0 28.8 28.8 - - - -
Uganda n/a - - - - (1.5) - (1.5) (1.5)
Other a, b, c 11.9 - 11.9 15.2 48.7 7.0 55.7 62.2
New ventures 19.1 - 19.1 25.4 42.3 - 42.3 53.3
Total write-off 129.9 342.5 472.4 748.9 405.5 853.9 1,259.4 1,657.3
a. Current year unsuccessful drilling results
b. Licence relinquishments
c. Review of forward work programme in light of capital re-allocation to
development projects and current low oil and gas price environment.
10. Property, plant and equipment
2015Oil and gas assets 2015Other fixed assets 2015Total 2014Oil and gas assets 2014Other fixed assets 2014Total
$m $m $m $m $m $m
Cost
At 1 January 9,240.3 283.7 9,524.0 8,692.4 221.4 8,913.8
Additions 1,235.1 23.1 1,258.2 1,454.7 80.6 1,535.3
Disposals (6.2) (3.6) (9.8) (601.3) 0.1 (601.2)
Transfer to assets held for sale - - - (177.2) - (177.2)
Transfer from intangible assets 63.6 - 63.6 - - -
Currency translation adjustments (92.9) (13.7) (106.6) (128.3) (18.4) (146.7)
At 31 December 10,439.9 289.5 10,729.4 9,240.3 283.7 9,524.0
Depreciation, depletion and amortisation
At 1 January (4,489.1) (147.9) (4,637.0) (3,942.3) (108.6) (4,050.9)
Charge for the year (note 7) (551.2) (28.9) (580.1) (572.2) (49.6) (621.8)
Impairment loss (467.2) - (467.2) (595.9) - (595.9)
Impairment reversal 61.2 - 61.2 - - -
Disposal 6.4 3.6 10.0 448.0 (0.1) 447.9
Transfer to assets held for sale - - - 73.3 - 73.3
Currency translation adjustments 79.9 8.2 88.1 100.0 10.4 110.4
At 31 December (5,360.0) (165.0) (5,525.0) (4,489.1) (147.9) (4,637.0)
Net book value at 31 December 5,079.9 124.5 5,204.4 4,751.2 135.8 4,887.0
The 2015 additions include capitalised interest of $110.4 million in respect
of the TEN development project (2014: $72.8 million). The carrying amount of
the Group's oil and gas assets includes an amount of $27.4 million (2014:
$33.0 million) in respect of assets held under finance leases. Other fixed
assets include leasehold improvements, motor vehicles and office equipment.
The currency translation adjustments arose due to the movement against the
Group's presentation currency, USD, of the Group's UK and Dutch assets which
have functional currencies of GBP and EUR respectively.
Trigger for 2015 2015Impairment$m Discount Short-term Mid-term price assumption Long-term price assumption
impairment rate assumption price
assumptiond
CMS GCUe a 87.5 10% 2yr forward curve n/a 42.5p/th
Thames GCUe b (44.2) 10% 2yr forward curve n/a 42.5p/th
Netherlands CGUe a 28.7 10% 2yr forward curve n/a 0.53E/th
Limande CGUf (Gabon) a (0.2) 13% 2yr forward curve $70/bbl $90/bbl
Niungo CGUf (Gabon) a 21.1 15% 2yr forward curve $70/bbl $90/bbl
Oba CGUf (Gabon) a 13.7 13% 2yr forward curve $70/bbl $90/bbl
Tchatamba (Gabon) c (16.8) 13% 2yr forward curve $70/bbl $90/bbl
M'boundi (Congo) a 65.9 12% 2yr forward curve $70/bbl $90/bbl
Equatorial Guinea CGUg a 16.3 10% 2yr forward curve $70/bbl $90/bbl
TEN (Ghana) a 228.5 10% 2yr forward curve $70/bbl $90/bbl
Chinguetti (Mauritania) a 5.5 10% 2yr forward curve $70/bbl $90/bbl
Impairment before tax 406.0
Associated deferred tax credit (49.1)
Impairment after tax 356.9
a. Reduction in estimated oil and gas forward curve and long-term price
(refer to accounting policy on significant estimates)
b. Reduction in decommissioning estimate
c. Increase in 2P reserves
d. UK NBP gas forward curve and Bloomberg Brent forward curve as at 31
December 2015. All pricing assumptions have been adjusted for individual
field and contract differentials
e. The fields in the UK and the Netherlands are grouped into two CGUs as all
fields within those countries share critical gas infrastructure
f. The Limande and Niungo CGUs in Gabon comprise a number of fields which
share export infrastructure
g. The Ceiba and Okume fields in Equatorial Guinea form a single CGU as they
share export infrastructure
All impairment assessments are prepared on a Value In Use basis using
discounted future cash flows based on 2P reserves profiles. An 1% increase in
the discount rates used would trigger a further impairment of $161.9 million
and a $10/bbl reduction to the whole oil price deck would trigger a further
impairment of $784.3 million.
11. Other assets
2015$m 2014$m
Non-current
Amounts due from joint venture partners 161.8 57.0
Uganda VAT recoverable 50.3 50.6
Other non-current assets 11.3 12.1
223.4 119.7
Current
Amounts due from joint venture partners 584.4 633.2
Underlifts 2.4 -
Prepayments 77.9 82.6
VAT recoverable 9.2 49.8
Other current assets 89.3 136.7
763.2 902.3
The increase in amounts due from joint venture partners relates to the
increase in operated current liabilities, which are recorded gross with the
corresponding debit recognised as an amount due from joint venture partners,
in Kenya and Ghana.
12. Trade and other payables
Current liabilities
2015 2014
$m $m
Trade payables 24.0 126.5
Other payables 61.2 104.6
Overlifts 3.7 15.6
Accruals 993.3 734.8
VAT and other similar taxes 26.9 92.1
Current portion of finance lease 1.5 1.3
1,110.6 1,074.9
Payables related to operated joint ventures (primarily related to Ghana and
Kenya) are recorded gross with the debit representing the partners' share
recognised in amounts due from joint venture partners (note 11). The decrease
in trade payables and the decrease in other payables predominantly represent
timing differences.
Non-current liabilities
2015 2014
$m $m
Other non-current liabilities 72.8 57.0
Non-current portion of finance lease 26.5 28.1
99.3 85.1
Trade and other payables are non-interest bearing except for finance leases.
13. Provisions
Current Provisions
2015 2014
$m $m
Provision for onerous service contracts 185.5 -
Provision for restructuring costs 1.5 -
187.0 -
Due to the reduction in planned future work programmes the Group has
identified a number of onerous service contracts. The expected unutilised
capacity has been provided for in 2015 resulting in an income statement charge
of $185.5 million (2014: $nil million).
During 2015 the Group has incurred $44.9 million in respect of restructuring
costs. After recharges to joint venture partners, the income statement charge
for restructuring costs is $40.8 million. As at 31 December 2015 $1.5 million
is yet to be incurred and has been recorded as a provision.
13. Provisions contd.
Non-current Provisions
Decommissioning2015$m Other provisions2015$m Total2015 Decommissioning2014$m Other provisions2014$m Total2014
$m $m
At 1 January 1,192.9 67.5 1,260.4 841.5 147.7 989.2
New provisions and changes in estimates (147.4) (9.9) (157.3) 454.9 (82.1) 372.8
Transfers to liability held for sale - - - (14.8) - (14.8)
Disposals 0.8 0.3 1.1 (54.6) - (54.6)
Decommissioning payments (40.8) - (40.8) (20.4) - (20.4)
Unwinding of discount 28.3 0.1 28.4 22.4 16.9 39.3
Currency translation adjustment (25.0) (1.7) (26.7) (36.1) (15.0) (51.1)
At 31 December 1,008.8 56.3 1,065.1 1,192.9 67.5 1,260.4
The decommissioning provision represents the present value of decommissioning
costs relating to the European and African oil and gas interests.
Inflation assumption Discount rate assumption Cessation of production assumption 2015 2014
$m $m
Congo 2% 3% 2027 15.2 13.4
Cote d'Ivoire 2% 3% 2026 53.3 52.7
Equatorial Guinea 2% 3% 2028-2029 126.2 175.8
Gabon 2% 3% 2021-2034 61.0 107.1
Ghana 2% 3% 2034-3036 257.7 278.3
Mauritania 2% 3% 2017 121.4 113.3
Netherlands 2% 3% 2020-2036 90.5 100.7
UK 2% 3% 2014-2018 283.5 351.6
1,008.8 1,192.9
Other provisions include a liability acquired through the acquisition of
Spring Energy which is contingent in terms of timing and amount on the
development of the PL407 licence in Norway. Other provisions also include the
contingent consideration in respect of the Spring acquisition.
14. Commercial Reserves and Contingent Resources summary (unaudited) working
interest basis
West Africa East Africa New Ventures TOTAL
Oilmmbbl Gasbcf Oilmmbbl Gasbcf Oilmmbbl Gasbcf Oilmmbbl Gasbcf Petroleummmboe
COMMERCIAL RESERVES
1 January 2015 307.6 226.4 - - - - 307.6 226.4 345.3
Revisions 3.0 6.8 - - - - 3.0 6.8 4.1
Transfer from contingent resources 0.9 - - - - - 0.9 - 0.9
Disposals - (10.0) - - - - - (10.0) (1.7)
Production (23.9) (17.4) - - - - (23.9) (17.4) (26.8)
31 December 2015 287.6 205.8 - - - - 287.6 205.8 321.8
CONTINGENT RESOURCES
1 January 2015 106.8 993.7 531.6 12.4 101.5 4.2 739.9 1,010.3 908.3
Revisions 9.9 (233.6) 79.1 30.2 - - 89.0 (203.4) 55.1
Additions - - 18.1 - - - 18.1 - 18.1
Disposals - (35.2) - - - - - (35.2) (5.9)
Transfers to commercial reserves (0.9) - - - - - (0.9) - (0.9)
31 December 2015 115.8 724.9 628.8 42.6 101.5 4.2 846.1 771.7 974.7
TOTAL
31 December 2015 403.4 930.7 628.8 42.6 101.5 4.2 1,133.7 977.5 1,296.5
1. Proven and Probable Commercial Reserves are based on a Group reserves
report produced by an independent engineer. Reserves estimates for each field
are reviewed by the independent engineer based on significant new data or a
material change with a review of each field undertaken at least every two
years.
2. Proven and Probable Contingent Resources are based on a Group reserves
report produced by an independent engineer. Resources estimates are reviewed
by the independent engineer based on significant new data received following
exploration or appraisal drilling.
3. The West Africa revisions to reserves relate to Jubilee, Equatorial
Guinea and Gabon.
4. The West Africa disposals relate to the L&Q block in the Netherlands and
farm-down of the Vincent discovery
5. The West Africa revision to gas contingent resources relates to the
relinquishment of the Pelican field in Mauritania.
6. East Africa additions to oil contingent resources relate to Etom in
Kenya.
7. East Africa revision to contingent resources relate to Kenya and Uganda.
The Group provides for depletion and amortisation of tangible fixed assets on
a net entitlements basis, which reflects the terms of the Production Sharing
Contracts related to each field. Total net entitlement reserves were 299.1
mmboe at 31 December 2015 (31 December 2014: 321.0 mmboe).
Contingent Resources relate to resources in respect of which development plans
are in the course of preparation or further evaluation is under way with a
view to future development.
About Tullow Oil plc
Tullow is a leading independent oil & gas, exploration and production group,
quoted on the London, Irish and Ghanaian stock exchanges (symbol: TLW). The
Group has interests in over 120 exploration and production licences across 22
countries which are managed as three Business Delivery Teams: West Africa,
East Africa and New Ventures.
EVENTS ON THE DAY
In conjunction with these results, Tullow is conducting a London Presentation
and a number of events for the financial community.
09.00 GMT - UK/European conference call (and simultaneous video webcast)
To access the call please dial the appropriate number below shortly before the
call and ask for the Tullow Oil plc conference call. A replay facility will be
available from approximately noon on 10 February until 17 February. The
telephone numbers and access codes are:
Live event Replay facility available from Noon
UK Participants +44 (0) 20 3427 1903 UK Participants +44 (0) 20 3427 0598
Irish Participants +353 (0)1 2465602 Irish Participants +353 (0) 1 4860902
Access Code 4375795
To join the live video webcast, or play the on-demand version which will be
available from noon on 10 February, you will need to have either Real Player
or Windows Media Player installed on your computer.
15:00 EST - US Conference Call
To access the call please dial the appropriate number below shortly before the
call and ask for the Tullow Oil plc conference call.
Live Event
Domestic Toll Free 1877 280 2296 Access code 4439098
Toll +1212 444 0896
FOR FURTHER INFORMATION CONTACT:
Tullow Oil plc (London)(+44 20 3249 9000)Chris Perry (Investor Relations)James Arnold (Investor Relations)George Cazenove (Media Relations) Citigate Dewe Rogerson(London) (+44 207 638 9571) Martin JacksonShabnam Bashir Murray Consultants (Dublin) (+353 1 498 0300) Pat WalshJoe Heron
Follow Tullow on:
Twitter: www.twitter.com/TullowOilplc
YouTube: www.youtube.com/TullowOilplc
Facebook: www.facebook.com/TullowOilplc
LinkedIn: www.linkedin.com/company/Tullow-Oil
Website: www.tullowoil.com
This information is provided by RNS
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