REG - Tullow Oil PLC - November Trading Update

Tullow OilAnnouncement

28/11/2024 07:00

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RNS Number : 9237N  Tullow Oil PLC  28 November 2024

November Trading Update

28 November 2024 - Tullow Oil plc (Tullow) issues the following business and
full year guidance update. The information contained herein has not been
audited and may be subject to further review and amendment.

 

Rahul Dhir, Chief Executive Officer, Tullow, commented today:

"Our cash generative business enables us to continue our deleveraging
progress. This has been achieved despite underperformance at the Jubilee
field, which has been offset in part by strong performance at TEN, lower
capital intensity and a continued focus on cost management. We are well
positioned to optimise our capital structure and look forward to progressing
plans to address our remaining debt maturities."

 

Operational update

·      Group production year-to-date averaged c.62 kboepd, including 6.5
kboepd of gas, in line with guidance.

Ghana

·      Jubilee oil production averaged c.89 kbopd (c.34.5 kbopd net) to
end-October, below expectations primarily due to underperformance of the J69-P
well as flagged previously, unplanned downtime at the GNGC onshore gas
processing plant and periods of reduced water injection due to power outages.

-  Water injection capacity has been increased to c.300 bwpd and gas offtake
is currently c.100 mmscfpd. Combined with further production optimisation
activities, this is expected to mitigate the declines experienced in the
second half of 2024.

·      TEN oil production has remained consistent, averaging c.19 kbopd
(c.10.5 kbopd net) to end-October, above expectations, with Enyenra and Ntomme
wells responding positively to both injection and production optimisation.

·      Overall FPSO uptime at Jubilee and TEN has remained high
averaging 98% year-to-date.

·      A 4D seismic programme in Ghana is expected to start in January
2025, providing further data to optimise well locations for future drilling
programmes.

Gabon and Côte d'Ivoire

·      Non-operated production is on track to average c.10.5 kbopd net
in 2024, in line with expectations.

-  The Simba field, in Gabon, was brought back onstream in August after being
shutdown in March.

-  Additionally at Simba, a discovery was made on the Sarafina
infrastructure-led exploration (ILX) well and work is ongoing with the
operator to determine commerciality.

Mauritania

·      Decommissioning activities in the Banda/Tiof fields in Mauritania
were accelerated in 2024 and have been completed ahead of schedule and below
budget.

 

Financial update

·      Tullow's Revolving Credit Facility (RCF) has been extended to the
end of June 2025 demonstrating continued strong bank support as the Group
progresses its refinancing plans. The $250 million facility provides
sufficient headroom for the business. See separate release: LINK
(https://www.tullowoil.com/media/press-releases/tullow-secures-commitments-extension-its-revolving-credit-facility/)

·      Tullow has no uncovered debt maturities until May 2026 and is
progressing a range of options to manage debt maturities and optimise the
Group's capital structure.

·      The outcome of the arbitration in respect of the Ghana Branch
Profits Remittance Tax assessment is now expected by the end of the year.

 

2024 Guidance update

·      2024 Group production reiterated at c.62 kboepd, as previously
guided.

·      Capital expenditure and decommissioning spend guidance remains
c.$230 million and c.$70 million, respectively.

·      Free cash flow is expected to be $150-200 million, below previous
guidance of $200-300 million due to timing of payments, namely the incremental
Jubilee lifting now expected in early January 2025 and overdue gas payments
from the Government of Ghana.

-  The final position within the revised range for 2024 will depend on
realised prices of four cargos yet to price, progress on receipt of the
overdue gas payments from the Government of Ghana (currently c.$40 million
outstanding) and working capital movements.

·      Year-end net debt is expected to be c.$1.4bn.

 

 CONTACTS
 Tullow Investor Relations                    Camarco (Media)

                                            (+44 20 3781 9244)
 ir@tullowoil.com (mailto:ir@tullowoil.com)

                                            Billy Clegg
 Nicola Rogers

 Matthew Evans                                Georgia Edmonds

                                              Rebecca Waterworth

 

Notes to editors

Tullow is an independent energy company that is building a better future
through responsible oil and gas development in Africa. The Company's
operations are focused on its West-African producing assets in Ghana, Gabon
and Côte d'Ivoire, alongside a material discovered resource base in Kenya.
Tullow is committed to becoming Net Zero on its Scope 1 and 2 emissions by
2030 and has a Shared Prosperity strategy that delivers lasting socio-economic
benefits for its host nations. The Group is quoted on the London and Ghana
stock exchanges (symbol: TLW).For further information, please refer to our
website at www.tullowoil.com (http://www.tullowoil.com/) .

 

Follow Tullow on:

Twitter: www.twitter.com/TullowOilplc (http://www.twitter.com/TullowOilplc)

LinkedIn: www.linkedin.com/company/Tullow-Oil
(http://www.linkedin.com/company/Tullow-Oil)

 

 

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