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Good financial performance and significantly strengthened balance sheet
Basin-opening success in Kenya at Ngamia-1 and Twiga South-1
Over 40 E&A wells planned for 2013 in Africa and the Atlantic Margins 

2012 Full Year Results Highlights

  • Financial results in line with market expectations and balance sheet substantially strengthened through debt re-financing and $2.9bn from Uganda farm-down.
  • Following successful and cost-effective well remediation, the Jubilee field is now producing around 110,000 bopd; A 2013 exit rate in excess of 120,000 bopd is expected.
  • Tweneboa-Enyenra-Ntomme (TEN) project Plan of Development submitted; approval expected shortly.
  • Major basin-opening discovery in Kenya with the Ngamia-1 and Twiga South-1 wells; Twiga South-1 well flow-tested at a combined rate of 2,351 barrels of 37 degree API oil from two zones with the final test ongoing.
  • Significant strategic portfolio management with a renewed focus on light oil including the acquisition of Norway's Spring Energy for $372m and the disposal of gas assets in Europe and Asia.
  • Additional new country entries in Africa and the Atlantic margins; Guinea, Greenland, Uruguay and Mozambique.
  • 40+ E&A well campaign planned for 2013; High-impact wells expected in Kenya, Ethiopia, Mauritania, Mozambique, Norway, French Guiana and Côte d’Ivoire.
   2012  2011  Change
 Sales Revenue ($m)  2,344  2,304  +2%
 Operating profit ($m)  1,185  1,132  +5%
 Profit before tax ($m)  1,116  1,073  +4%
 Profit after tax ($m)  666  689  -3%
 Basic earnings per share (cents)  68.8  72.5  -5%
 Full year dividend per share (pence)  12.0  12.0  0%
 Operating cash flow before working capital ($m)  1,777  1,832  -3%
 Working interest production (boepd)  79,200  78,200  +1%
 Realised oil price per barrel ($)  108.0  108.0  0%
 Realised gas price per therm (pence)  58.5  57.0  +3%

Commenting today, Aidan Heavey, Chief Executive, said:

“2012 was a year of major progress for Tullow. We materially enhanced the business with a basin-opening oil discovery in Kenya, by adding highly prospective new licences in Africa and the Atlantic Margins, refinancing our debt and partially monetising our Ugandan assets. The Jubilee Field in Ghana is now approaching its full potential and provides the base for our production profile and operational cash flow. Our financial position underpins our highly ambitious 2013 exploration programme which has high-impact wells planned in Kenya, Ethiopia, Norway, Mauritania, Mozambique, Côte d'Ivoire and French Guiana. This focus on exploration-led growth, together with active portfolio management and Tullow's strong balance sheet, provides an excellent platform for growth in 2013 and beyond.”

Presentation in London, Webcast and Conference Calls: Details are available on page 26 of the full year results PDF (0.57Mb) and in the Results Centre on the Group’s website at www.tullowoil.com.