REG - Tullow Oil PLC - November Trading Update

Tullow OilAnnouncement

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RNS Number : 4604I  Tullow Oil PLC  21 November 2025

November Trading Update

21 November 2025 - Tullow Oil plc (Tullow) issues the following business and
guidance update. The information contained herein has not been audited and may
be subject to further review and amendment.

Ian Perks, Chief Executive Officer, Tullow, commented today:

"Since joining as CEO in September I have been impressed by the calibre of our
team and the quality of our assets. Our near-term priority remains to put
Tullow on a long-term sustainable financial footing. To achieve this, we are
focused on maximising operational efficiency in Ghana, cost optimisation, and
refinancing the Group's capital structure.

"In recent months we have successfully completed the sale of our entire
working interest in Kenya for at least $120 million and the sale of our assets
in Gabon for c.$300 million net of taxes.

"There is strong operational momentum across the Company with the acquisition
of new 4D seismic data, commencement of an OBN survey and signing of the MoU
in Ghana to extend our production licences for both Jubilee and TEN to 2040.
We are encouraged by the early successes in the recent Ghana drilling campaign
and have spudded the second well in the programme. We continue to face
challenges related to the natural decline in our existing well stock and are
focused on exploring all options to help mitigate this. Looking ahead into
2026 we will look to optimise production through management of the decline and
the additional production from new wells."

Operational update

·      2025 Group production to end-October averaged c.40.7 kboepd,
including 7.1 kboepd of gas, taking into account the sale of the Gabonese
assets effective from the start of the year.

Ghana

·      Jubilee oil production in 2025 has averaged c.61 kbopd (c.23.9
kbopd net) to end-October.

·      Jubilee production in 2025 continues to reflect the issues
experienced in the first half of the year, but is supported by good
performance from the first of the two 2025 Jubilee production wells (J72-P),
which was brought onstream in July.

·      Drilling on Jubilee recommenced at the start of November, with
the second new production well (J73-P) to come onstream around the end of the
year.

·      The partnership has approved a five well 2026 drill programme,
which includes four committed wells (three producers and one water injector)
and the addition of one option well (a producer), currently being progressed.

·      Interpretation of the 4D seismic data acquired in the first
quarter continues to deliver informative reservoir visualisation insights and
is supporting well design optimisation for the current campaign. The Ocean
Bottom Node (OBN) seismic survey is underway and is expected to complete
around the end of the year. Integrated processing of both OBN and towed
streamer 4D datasets is expected to deliver an improved seismic velocity model
in 2026, supporting enhanced subsurface imaging and fluid predictions.

·      TEN oil production in 2025 has averaged c.16 kbopd (c.8.9 kbopd
net) to end-October, above expectations through continued strong Ntomme and
Enyenra performance.

·      Overall FPSO uptime at Jubilee and TEN has remained high,
averaging 97% to end-October.

·      Following the signing of the Memorandum of Understanding (MoU)
with the Government of Ghana, good progress has been made to finalise the
agreements required to implement the licence extensions for Jubilee and TEN to
the end of 2040, together with payment security for gas and an updated Plan of
Development for Jubilee.

·      In addition, a new Jubilee Gas Sales Agreement is now in place
confirming the current gas price to the end of the licences.

Côte d'Ivoire

·      Espoir production averaged c.1.2 kboepd net to end-October,
slightly below expectations primarily due to gas export outages during the
third quarter. Tullow continues to work with the operator to optimise the
strategy going forward.

Strategic and financial update

·      Tullow has made substantial progress this year on a number of
strategic and financial priorities, including the sales processes in Kenya and
Gabon:

-  On 25 September, Tullow successfully completed the sale of its entire
working interest in Kenya and received $40 million proceeds. A further $40
million in proceeds are expected on ratification of the Field Development Plan
(FDP) approval before the end of the year, which will be followed by a third
$40 million in proceeds payable over five years from the third quarter of 2028
onwards.

-  On 29 July, Tullow completed the sale of Tullow Oil Gabon SA for a total
cash consideration of $307 million net of tax and customary adjustments.

·      Cost base optimisation savings of c.$10 million are well
progressed, to reduce 2025 annual net G&A to c.$40 million, with targeted
savings of c.$50 million over the next three years compared to 2024.

·      Tullow is engaging with bondholders, commodity traders and other
private sources of funding with respect to the refinancing of its capital
structure. However given the risks associated with business performance, wider
market conditions and the upcoming May 2026 bond maturity, Tullow is
progressing alternative options with certain of its creditors, including an
amend and extend exercise and other forms of liability management
transactions.

Guidance

·      2025 Group production guidance is expected to be at the lower end
of the 40-45 kboepd range, as previously guided.

·      Capital expenditure and decommissioning expenditure guidance for
2025 remains c.$185 million and c.$20 million, respectively.

·      Free cash flow guidance for 2025 remains c.$300 million at
$65/bbl (realised oil price after hedging to end-Oct c.$68/bbl). This includes
recovery of outstanding gas receivables due from the Government of Ghana of
c.$100 million which are yet to be received. Total receivables due from the
Government of Ghana (including TEN development debt and overdue cash calls)
stood at over $200 million (net to Tullow) as at the end of October. Tullow is
working closely with the government and its various agencies to resolve this
situation.

·      Year-end 2025 net debt guidance is c.$1.2 billion.

·      Production in 2026 will be dependent on a number of factors,
including production from new wells helping to offset the natural decline from
existing well stock.

 2026 key guidance metrics   ( )
 Group production            34-42 kboepd
 Oil price assumption        $65/bbl
 Capital expenditure         c.$200 million
 Decommissioning             c.$25 million
 Pre-financing cash flow(1)  c.$70-100 million

(1) Pre-financing cash flow is defined as underlying operating cash flow plus
net cash from/(used) in investing activities, decommissioning expenditure and
payments to/from decommissioning escrow fund.

 CONTACTS
 Tullow Investor Relations                    Camarco (Media)

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

                                            Billy Clegg
 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. Tullow's operations are
focused on its core producing assets in Ghana. Tullow is committed to becoming
Net Zero on its Scope 1 and 2 emissions by 2030, with a Shared Prosperity
strategy that delivers lasting socio-economic benefits for its host nations.
The Group is quoted on the London and Ghanaian stock exchanges (symbol: TLW).
For further information, please refer to our website at www.tullowoil.com
(http://www.tullowoil.com/)

 

Follow Tullow on:

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

X: www.X.com/TullowOilplc (http://www.X.com/TullowOilplc)

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No 596/2014 (as it forms part of UK domestic
law by virtue of the European Union (Withdrawal) Act 2018 as amended by virtue
of the Market Abuse (Amendment) (EU Exit) Regulations 2019). Upon publication
of this announcement, this inside information will be considered to be in the
public domain. The person responsible for arranging the release of this
announcement on behalf of Tullow is Adam Holland, Company Secretary.

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