Tullow Oil Share Discussion Threads

[badmumba] 11/11/2015 08:15

No one's listening Herby and down we go again ..

Anyone who told me to shut up want to comment ?

[herbyrainer] 11/11/2015 08:10

Give it a rest you bunch of silly rampers! You still believe the world situation will change over night to the positive. Where are all the silly 4 pound brigade from last week. Like I have called for months on here, this is range bound at £1.50-£2.50 until the world situation changes significantly.

[edjge2] 11/11/2015 08:06

market not overly impressed it seems!

[wantmorethan24p] 11/11/2015 08:04

wait until ten comes onstream next year.it will add massive cash flow.

[paulbiya] 11/11/2015 07:59

Sorry I missed it. It will be 4.2bn

[paulbiya] 11/11/2015 07:58

In February 2015 telegraph said.....Tullow disclosed last month that it ended 2014 with net debt of $3.1bn, and RBC Capital Markets expects the explorer's borrowings to grow to $4.2bn by the end of 2015. Should oil prices remain weak, the company is expected to breach its banking covenants.We know they are supportive. But what is debt level?

[paulbiya] 11/11/2015 07:49

What is debt level?

[cricklewood] 11/11/2015 07:43

West African average oil production year-to-date is in line with
guidance. Full year average West African oil production now expected
to be 66-67,000 bopd. Jubilee expected to average around 100,000
bopd gross in line with previous guidance.
-- TEN development project in Ghana is around 75% complete and on
schedule and on budget to deliver first oil in mid-2016
-- RBL debt capacity remains unchanged at $3.7 billion following
the routine bi-annual redetermination in September; 2015 year-end
facility headroom and free cash expected to be around $1.7 billion
and net debt around $4.2 billion
-- Full Year 2015 pre-tax operating cash flow before working capital
is expected to be around $1.0 billion; Major Simplification Project
remains on track to deliver cost savings of $500 million over
the next three years
-- The Group's commodity hedge programme has a net positive mark
to market value of approximately $450 million;
36,011 bopd of 2016 Group oil net entitlement volumes hedged
with an average floor price protection of around $75.5/bbl
-- Kenya and Uganda development plans progressing towards FID; South
Lokichar appraisal activity close to completion with results
to date in line with expectations, underpinning current resource
estimates of around 600mmbo
-- Kenya basin opening exploration drilling re-commenced with the
spudding of Emesek-1 well (formerly Tausi) during October in
the North Lokichar Basin; Cheptuket-1 well to spud in Q1 2016
following Etom-2 exploratory appraisal well
-- Exploration prospect inventory being enhanced; successfully farming
down for carries in our higher equity licences
-- Full Year 2015 capex in line with current guidance at $1.9 billion;
2016 capex now expected to be approximately $1.2 billion


AIDAN HEAVEY, CHIEF EXECUTIVE OFFICER, TULLOW OIL PLC, COMMENTED TODAY:

"Whilst 2015 has been a difficult year across the industry, we have taken appropriate steps within our business to meet the challenges presented by lower oil prices. We have focused our resources on our West African oil assets which, by 2017 with TEN onstream, will be producing around 100,000 bopd net to Tullow. We are also focused on managing our costs and ensuring that we have sufficient funding to meet all our commitments. We expect to begin deleveraging our balance sheet with production from TEN and this project remains on time and on budget for mid-2016. Our East African developments are progressing steadily with FID for both Kenya and Uganda now expected in 2017. As we approach the end of the year, we are focused on our priorities of generating steady cashflow from our operations, completing TEN on schedule and on budget, ensuring we retain appropriate liquidity and building on our exciting exploration prospect inventory for the future."

Operational update

WEST AFRICA

Ghana

Jubilee

Gross working interest oil production from the Jubilee field averaged 93,000 bopd (net: 33,000 bopd) in the third quarter of 2015. Unplanned downtime on an FPSO gas compressor temporarily restricted gas exports from early July to early August, which resulted in lower oil production during the period. Since successfully resolving the issue, normal operations have resumed and the Group remains on track to meet 2015 production guidance of approximately 100,000 bopd (net: 35,500 bopd).

Jubilee field well capacity is being enhanced with the completion of the final Phase 1A wells. One production well came on stream in September, a further production well is due on stream in December and a water injection well is due on line in early 2016. The Jubilee Partners also continue to work with the Government of Ghana with the aim of submitting a Greater Jubilee Full Field Development Plan, which will include the Mahogany and Teak discoveries, by the end of 2015.

TEN

The TEN Project continues to make excellent progress, is over 75% complete and remains on schedule and on budget for first oil in mid-2016. The FPSO is now mechanically complete and commissioning work is under way. The vessel is on track to sail away from Singapore in early January to arrive in Ghana in the first quarter 2016. The subsea fabrication work has completed and the subsea installation of this equipment is now approximately 60% complete. The completion of the start-up wells is progressing with the fourth of ten well completions currently being installed.

Gabon

In Gabon, Tullow has regained its 7.5% stake in the Onal Complex producing fields and the Ezanga block (formerly the Omoueyi exploration block). In addition, Tullow has been granted licence extensions in the Onal Complex fields until 2034 and has gained access to two small oil discoveries made within the Ezanga block in 2014. In return it has been agreed that the effective date of the new licence will be 1 August 2015.

European production

The West Africa Business Delivery Team also manages the Group's European production and development operations. Year-to-date European average working interest gas production is in line with expectations and the full year forecast is around

7,000 boepd.

EAST AFRICA

Kenya

During the period Tullow has continued to focus on appraisal of the South Lokichar basin to test the extent of the oil discoveries. The Ngamia, Amosing, Twiga, Ekales and Agete fields have all now been appraised and reservoir data for the field development plan is being evaluated. The work to date continues to support the South Lokichar Basin Pmean gross recoverable resource estimate of around 600 mmbo whilst additional prospective upside in the basin has also been identified.

In the third quarter of 2015, the Twiga-3 exploratory appraisal well in Block 13T encountered sands within the Lokone Shale sequence that are interpreted as good quality oil bearing reservoir over a gross interval of 120 metres. This result will be assessed in future exploration and appraisal activities, stepping out into the South Lokichar basin to further define this encouraging additional oil potential. The Amosing-5A exploratory appraisal well in Block 10BB was a bold step-out test of an undrilled fault block. The well encountered an estimated 15 to 28 metres of net oil pay in a downflank position and successfully proved a northern extension to the Amosing field.

The production phase of the Extended Well Testing (EWT) programme has been completed at the Amosing field and is ongoing at the Ngamia field. Pressure communication was observed during the Amosing EWT in all five reservoir zones tested over distances of approximately 330 to 450 metres. These results prove reservoir communication over distances suitable for field development. The production phase of the Ngamia field EWT commenced in September. Results to date indicate well productivity in line with expectations and proven communication in one zone to date.

Following completion of appraisal activities, the Marriot 46 is now drilling the Emesek-1 wildcat well, which will test the undrilled North Lokichar basin. The well was spudded on 15 October and drilling is ongoing. Following Emesek-1, the Marriot 46 will move to drill the exploratory Etom-2 well in an undrilled fault block adjacent to the Etom oil discovery. The rig will then move to drill the Cheptuket-1 exploration well in Block 12A and will test a basin bounding structural closure in the undrilled Kerio Valley Basin, in a similar structural setting to the successful Ngamia and Amosing discoveries.

Tullow has agreed to farm down 25% of its 65% operated working interest in Block 12A to Delonex for a carry. The agreement is subject to government consent.

East Africa Development

In Uganda, the Board of the National Petroleum Authority and National Oil Company were inaugurated on 23 October 2015 and the award of production licences is expected to follow soon now that the pre-requisite institutions are in place. In Kenya, discussions with the Government regarding the draft field development plan for the discoveries in the South Lokichar Basin continue positively, with targeted submission by year-end 2015. Preparation for FEED is also under way in both countries, and is expected to commence in 2016.

In August 2015, a bilateral agreement was reached between the Presidents of Uganda and Kenya adopting the Northern Kenya route for the regional crude oil pipeline, subject to certain conditions. Tullow is working with both governments to fulfil the conditions set in the agreement.

NEW VENTURES

Tullow continues to build on its exciting exploration prospect inventory for the future; replenishing and high-grading its exploration portfolio while actively managing its equity exposure to future seismic and drilling costs.

In Suriname a 4,000 sq km 3D seismic programme of the Tullow-operated offshore Block 54 was completed in September 2015. This was followed by a 20% farm out of Block 54 in October 2015 to Noble for a carry, leaving Tullow with a 30% interest and retained operatorship. Tullow and its partners are reviewing the results of the recent seismic programme ahead of selecting future drilling prospects. Initial indications suggest that the Araku prospect has significant potential.

[hem007] 11/11/2015 07:39

The power of positive thinking

[opodio] 11/11/2015 07:37

Going up 40p today i feel

[azalea] 11/11/2015 07:36

Most of the countries who rely on oil as their main export are not those whose economies influence the global economy to a significant extent. Hence if they go bust they will most certainly not carry every one else with them. With India and China alone representing circa 30% of the global population, low oil prices will on balance benefit them significantly.

[lift and shift] 11/11/2015 07:28

That's a positive statement from the CEO..

[spacedust] 10/11/2015 20:27

...a guarantee as much as a guarantee of 25th December being Xmas day ##

[spacedust] 10/11/2015 20:25

Crude up, wti up..... Oil shares down. This means they are getting rid of impatient holders. Up day tomorrow guaranteed by me. Oil cannot stay at these levels regardless of demand or supply or world interest rates or world job figures or growth or anything. If oil doesn't go up the entire planet will remain in recession indefinitely. There are far too many countries that rely on oil as their main export and if they go bust thru carry everyone else with them. So only possible solution is oil price rise and that is a guarantee as there will be a Xmas day on 25th December

[oldvic] 10/11/2015 20:06

did i see someone say update tommorrow ?

[wantmorethan24p] 10/11/2015 17:08

plenty of headroom for tullow....


As of 30 September 2015, the Group has cash and undrawn credit facilities amounting to US$2.1 billion of headroom with no near term maturities. This successful outcome builds on the US$450 million capital increase and covenant renegotiation achieved in March 2015.

[little minx] 10/11/2015 16:18

Exactly playing their own game.

[little minx] 10/11/2015 16:15

And they issue those notes on the basis of whether or not they want you to buy it. Bad share price means somebody wants to get in on the cheap.

[badmumba] 10/11/2015 16:13

Take your pick ....

10 Nov Investec 185.00 Sell
10 Nov Liberum Capital 250.00 Buy
10 Nov Nomura 185.00 Reduce

[wantmorethan24p] 10/11/2015 15:51

new on board....
switched my PMO into this...a straight and easy swap.


what can we expect tomorrow?from the results??

[badmumba] 10/11/2015 15:51

jovi you will lose the bet it will close below without doubt and without doubt at some point it will be below £2 quite soon , i'm not plucking figures from the air like others who say it will be this or that Minx .
Anyhow as i was last time i will be a buyer below £2 and if and when oil really moves i would be a holder here. But that won't be for quite some time i'm afraid .