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2011 Half-yearly results summary

Tullow had a very strong first half. Record results were driven by increased production from the Jubilee field in Ghana and higher commodity prices. Exploration and appraisal success continued and the Group strengthened its portfolio with farm-ins in East Africa and two strategic acquisitions. Further progress was made in Uganda and Tullow now expects completion of its farm-down to CNOOC and Total in September. In July the Group listed Tullow Oil plc shares on the Ghana Stock Exchange.

  1H 2011 1H 2010 Change
Sales revenue ($m) 1,062 486 +119%
Operating profit ($m) 588 124 +374%
Profit before tax ($m) 540 131 +312%
Profit after tax ($m) 330 89 +271%
Basic earnings per share (cents) 35.0 9.4 +272%
Interim dividend per share (pence) 4 2 +100%
Operating cash flow before working capital ($m) 855 367 +133%
Production (boepd, working interest basis) 75,100 55,800 +35%
Realised oil price (US$ per bbl) 112 77 +45%
Realised gas price (pence per therm) 56 34 +65%


Key highlights

  • Record sales revenue of over $1 billion driven by Jubilee Production; interim dividend doubled.
  • 71% exploration and appraisal success year-to-date (17/24); Akasa‑1 discovery announced today.
  • Completion of farm-in to six blocks in Kenya and Ethiopia; first well to spud in Kenya in Q4 2011.
  • Group production expected to average 82‑84,000 bopd for 2011 and exceed 100,000 bopd by year‑end.
  • Jubilee production in Ghana is expected to increase to 105,000 bopd in October; plateau production of 120,000 bopd is now expected before year‑end.
  • MoU signed with the Government of Uganda; $2.9 billion Sale and Purchase Agreements signed for the farm-down to CNOOC and Total; completion now expected in September.
  • Nuon E&P and EO Group acquisitions completed in June and July respectively.
  • Secondary listing on the Ghana Stock Exchange completed in July following successful $72.3 million offer.


“We have delivered a strong performance and achieved record results in the first half allowing us to double the dividend. We continue to make good progress with production plans in both Ghana and Uganda and while delays to the farm-down to CNOOC and Total have been frustrating, we now expect completion in September. With a strong balance sheet, growing production and a potentially transformational drilling campaign to come, we move into the second half of the year with real confidence.”

Presentation in London, Webcast and Conference Calls: Details are available in the Results Centre on the Group’s website.