REG - Tullow Oil PLC - 2015 Half Year Results <Origin Href="QuoteRef">TLW.L</Origin> - Part 3
29/07/2015 07:02
- Part 3: For the preceding part double click ID:nRSc3698Ub
- 34.0 10% 3yr forward curve 55p/th
Norway - 1.5 3.5 10% 3yr forward curve 55p/th
Congo (Brazzaville) b (3.3) - 49.5 11%d 3yr forward curve $90/bbl
Equatorial Guinea - - 4.9 15% 3yr forward curve $90/bbl
Gabon c (29.3) 6.4 163.3 11%d 3yr forward curve $90/bbl
Mauritania - - 37.6 15% 3yr forward curve $90/bbl
Net Impairment reversal after tax (21.9) 7.9 421.0
Associated deferred tax credit 10.8 - 174.9
Net Impairment reversal before tax (11.1) 7.9 595.9
a. Decrease in gas forward curve
b. Increase in oil forward curve
c. Reversal of previous impairments
d. The impairment test was run using a post tax discount rate as tax is
deducted at source.
e. UK NBP gas forward curve and Bloomberg Brent forward curve
12. Other assets
30.06.15Unaudited$m 30.06.14Unaudited$m 31.12.14 Audited$m
Non-current
Amounts due from joint venture partners 117.9 - 57.0
Uganda VAT recoverable 50.6 50.6 50.6
Norwegian tax receivable 170.7 155.9 -
Other non-current assets 10.9 20.0 12.1
350.1 226.5 119.7
Current
Contingent consideration receivable - 291.7 -
Amounts due from joint venture partners 411.0 421.0 633.2
Underlifts 36.2 7.0 -
Prepayments 58.9 147.7 82.6
VAT recoverable - 51.3 49.8
Other current assets 97.9 131.6 136.7
604.0 1,050.3 902.3
The increase in non-current amounts due from joint venture partners relates to
a carry of TEN development expenditure in Ghana.
13. Provisions
Decom6 months ended 30.06.15Unaudited Other6 months ended 30.06.15Unaudited Total6 months ended 30.06.15Unaudited Decom6 months ended 30.06.14Unaudited Other6 months ended 30.06.14Unaudited Total6 months ended 30.06.14Unaudited DecomYear ended 31.12.14Audited Other TotalYear ended 31.12.14Audited
$m $m $m $m $m $m $m Year ended 31.12.14Audited $m
$m
At 1 January 1,192.9 67.5 1,260.4 841.5 147.7 989.2 841.5 147.7 989.2
New provisions and changes in estimates (34.2) 14.9 (19.3) 9.2 (37.3) (28.1) 454.9 (82.1) 372.8
Transfers to liability held for sale - - - - - - (14.8) - (14.8)
Disposals - - - - - - (54.6) - (54.6)
Decommissioning payments (22.5) - (22.5) (1.1) - (1.1) (20.4) - (20.4)
Unwinding of discount 14.8 (0.2) 14.6 10.2 (1.2) 9.0 22.4 16.9 39.3
Currency translation adjustment (5.3) (3.9) (9.2) 7.4 0.5 7.9 (36.1) (15.0) (51.1)
At 30 June/31 December 1,145.7 78.3 1,224.0 867.2 109.7 976.9 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, which are
expected to be incurred up to 2035. A review of all decommissioning estimates
was undertaken by an independent specialist in 2014 which has been used for
the purposes of the 2015 half-year results.
Other provisions include a provision for restructuring costs of $41.9 million
which are expected to be incurred during 2015. To date $23.3 million of the
initial provision has been utilised. After recharges to joint venture
partners, the income statement charge for restructuring costs is $25.4
million. Other provisions also include a provision for a payment which is
contingent in terms of timing and amount on the development of the PL407
licence in Norway and the contingent consideration in respect of the Spring
acquisition.
14. Called up equity share capital
In the six months ended 30 June 2015, the Group issued 0.7 million (1H 2014:
0.4 million) new shares in respect of employee share options.
As at 30 June 2015, the Group had in issue 911.4 million allotted and fully
paid ordinary shares of Stg 10 pence each (1H 2014: 910.4 million).
15. Subsequent events
Since the balance sheet date there has been an unplanned technical issue that
affected the gas compression system on the Jubilee FPSO which has temporarily
reduced oil production to approximately 65,000 bopd. This issue is expected to
be resolved by mid-August.
16. 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 307.6 226.8 - - - - 307.6 226.8 345.3
Revisions (0.9) - - - - - (0.9) - (0.9)
Disposals - (9.9) - - - - - (9.9) (1.7)
Production (11.9) (9.5) - - - - (11.9) (9.5) (13.5)
30 June 2015 294.8 207.4 - - - - 294.8 207.4 329.2
CONTINGENT RESOURCES
1 January 2015 186.0 992.1 531.6 12.5 22.6 4.2 740.2 1,008.8 908.3
Revisions (0.3) - (0.8) - - - (1.1) - (1.1)
Additions - - 1.7 - - - 1.7 - 1.7
Disposals - (283.0) - - - - - (283.0) (47.2)
30 June 2015 185.7 709.1 532.5 12.5 22.6 4.2 740.8 725.8 861.7
TOTAL
30 June 2015 480.5 916.5 532.5 12.5 22.6 4.2 1,035.6 933.2 1,190.9
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 both Tullow's
estimates and the Group reserves report produced by an independent engineer.
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 301.3
mmboe at 30 June 2015 (30 June 2014: 336.3 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 development within the foreseeable future.
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.
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 BST - 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 29 July until 5 August. The telephone
numbers and access codes are:
Live event Replay facility available from Noon
UK Participants +44(0)20 3427 1902 UK Participants 020 3427 0598
Irish Participants +353(0)1 2476528 Irish Participants (0)1 4860902
Access Code 2657625 Access Code 2657625
To join the live video webcast, or play the on-demand version which will be
available from noon on 29 July, you will need to have either Real Player or
Windows Media Player installed on your computer.
15:00 BST - 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 +1 877 280 1254 Access code 8205329
Toll +1 646 254 3363
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
The company news service from the London Stock ExchangeRecent news on Tullow Oil
See all newsREG - Tullow Oil PLC - Director/PDMR Shareholding
AnnouncementREG - Tullow Oil PLC - Receipt of Tranche B payment for Kenya assets sale
AnnouncementREG - Tullow Oil PLC - Refinancing Transaction Update
AnnouncementREG - Tullow Oil PLC - Trading Statement
AnnouncementREG - Tullow Oil PLC - Tullow signs SPA to acquire TEN FPSO in Ghana
Announcement