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  • Half-yearly results in line with market expectations
  • Continued exploration success; Jubilee development on track

2009 Half-yearly results summary

In the first half of 2009 Tullow continued to deliver major exploration success with further world-class discoveries in Ghana and Uganda. Tullow also made excellent progress towards first oil in Ghana with formal government approval received in July for the Jubilee field development plan, ensuring that facilities fabrication and development drilling remain on track. Overall financial results for the half-year are down on the first half of 2008 but in line with market expectations. This reflects a 16% decrease in production following the decision to primarily focus 2009 capital investment in Ghana and Uganda and a 25% reduction in average price realisations.

Download Tullow Oil plc 2009 Half-yearly results

   1H 2009  1H 2008 Change 
 Sales revenue ($m)  291.3  378.0  -12%
 Operating profit ($m)  60.7  201.3  -70%
 Profit before tax ($m)  34.8  187.3  -81%
 Profit after tax ($m)  21.4  126  -83%
 Basic earnings per share (pence)  2.73  17.23   -84%
 Interim dividend per share (pence)  2.00  2.00  No change
 Operating cash flow before working capital ($m)  200.9  295.3  -32%
 Production (boepd, working interest basis)  59,265  70.550   -16%
 Realised oil price per bbl (US$)  53.0  80.1  -34%
 Realised gas price per therm (pence)  42.4  51.7  -18%

Key highlights

  • Jubilee Phase 1 Plan of Development formally approved by the Government of Ghana. Development drilling, FPSO conversion and subsea facilities fabrication all on track for 2H 2010 first oil;
  • 90% exploration success rate in 2009 to date builds major resource potential for further appraisal:
    • Ngassa-2 encounters oil shows in two reservoir intervals; evaluation ongoing;
    • Giraffe-1 confirms the Buffalo-Giraffe field as a 300 million barrel gross discovery;
    • Tweneboa-1 makes major light hydrocarbon discovery; first appraisal well in early 2010;
    • Five exploration blocks added in Liberia and Sierra Leone; Venus-B exploration well in progress;
  • US$2 billion bank facility secured and £402 million equity placing completed; and
  • Group working interest production for 2009 forecast to average 58,000 bopd.

Commenting today, Aidan Heavey, Chief Executive, said:

“It has been a good first half. Our development projects are on target, our exploration campaigns continue to deliver material discoveries and we have strengthened our balance sheet to maintain financial flexibility. With continued strong progress with our major projects and further expansion of our exploration portfolio, Tullow is well positioned for significant production growth from 2010 and beyond.”

Presentation, Webcast and Conference Calls:

In conjunction with these results, Tullow will conduct a presentation in London and a number of events for the financial community. Details are available on page 25 of this announcement (view the full press release in PDF) and in the Results Centre on the Group’s website at