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These results are presented in US Dollars, the Group’s presentational currency with effect from 1 January 2010.

  • Strong first half results in line with market expectations
  • Exploration success continues; Owo-1 confirms second major oil field in Ghana
  • Uganda discovered resources now 1 billion barrels

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.

Download Tullow Oil plc 2010 Half-yearly results (PDF, 0.28MB, opens in a new window)

   H1 2010  H1 2009  Change
 Sales revenue ($m)  486  439  +11%
 Operating profit ($m)  124  92  +35%
 Profit before tax ($m)  131  52  152%
 Profit after tax ($m)  89  31  184%
 Basic earnings per share (US$ cent)  9.4  4.0  134%
 Interim dividend per share (pence)  2.0  2.0  No change
 Operating cash flow before working capital ($)  367  303  +21%
 Production (boepd, working interest basis)  55,800  59,265  -6%
 Realised oil price (US$ per bbl)  77.0  53.0  45%
 Realised gas price (pence per therm)  34.0  42.4  -20%

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.”

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 28 of the Half year results announcement and in the Results Centre.