UK: Tullow Announces Strong First Half Results and Exploration Success at Owo-1

Tullow Oil plc (Tullow), the independent oil and gas exploration and production Group, announces its half-yearly results for the six months ended 30 June 2010. These results are presented in US Dollars, the Group’s presentational currency with effect from 1 January 2010.

2010 Half-yearly results summary

The Group had a strong first half. Results were up on the first half of 2009 reflecting a 30% increase in average commodity price realisations. While production declined by 6%, first oil from Ghana is expected before year-end and will result in significant production growth and increased cash flow in 2011.

Key highlights

* Jubilee project remains on schedule for first oil in November or December 2010;

* Heritage Ugandan assets acquired; finalisation and planned farm-down to CNOOC and Total awaiting resolution of the Capital Gains Tax dispute with Heritage;

* Excellent exploration & appraisal performance year-to-date: 14 successes from 17 wells;

* New oil field discovered by Owo-1 in Ghana; accelerated appraisal of Owo & Tweneboa planned;

* Mpyo-1 discovers new oil field; discovered resources in Uganda now 1 billion barrels;

* Basin-testing exploration wells in West Africa and South America to be drilled in next 6 months;

* Full year production forecast increased to 57 – 58,000 boepd; and

* US$1.45bn equity placing completed to support accelerated activities in Ghana and Uganda.

Commenting today, Aidan Heavey, Chief Executive, said:

“ Tullow has continued to make strong progress in the first half of 2010. Our exploration and development programmes are delivering excellent results with significant new oil discoveries being made in both Ghana and Uganda and first oil from Jubilee expected before year-end. With the balance sheet strengthened at the beginning of the year, and the expected proceeds from the Uganda farm-down, we will be very well funded to pursue our exploration-led growth strategy. We look forward with confidence to a promising second half of the year and strong performance overall in 2010.”

For detailed report click here

[mappress]

Source: Tullowoil , August 26, 2010;