2016 Full Year Results

2016 revenue of $1.3 billion and operating cash flow of $0.8 billion

Debt reduction under way with positive free cash flow in Q4 2016 after TEN first oil

Substantial farm-down in Uganda; development capex covered beyond first oil

READ THE FULL STATEMENT HERE

Details of a presentation in London, webcast and conference calls are available here.

COMMENTING TODAY, AIDAN HEAVEY, CHIEF EXECUTIVE, SAID:

“The clear highlight of 2016 was delivering Ghana’s second major oil and gas development, the TEN fields, on time and on budget. Production from TEN, alongside our other West African oil production, has provided Tullow with positive free cash flow and enabled us to begin the important process of deleveraging our balance sheet. As we focus our free cash flow primarily on reducing our debt, capital discipline remains critical. We have made excellent progress with our East African developments and are building a high quality exploration portfolio to grow our business. As I move to become Chairman of the Group and hand over to Paul McDade, Tullow has the right assets and expertise to take full advantage of the opportunities ahead.”

2016 FULL YEAR RESULTS SUMMARY

• Revenue of $1.3 billion; post tax loss of $0.6 billion after write-offs and impairments. Operating cash flow of $0.8 billion.
• Year-end 2016 net debt of $4.8 billion with significant facility headroom and free cash of $1.0 billion. During the year, $300 million of convertible bonds issued; Corporate Facility extended to April 2018; $345 million RBL accordion secured.
• On 7 February 2017 the Corporate Facility was extended by a further year to April 2019.
• 2016 capex of $0.9 billion; 2017 capex forecast of $0.5 billion including $125 million to be offset by Uganda farm-down deal.
• West Africa net working interest oil production, including production-equivalent insurance payments, averaged 65,500 bopd in 2016 and in 2017 is expected to average between 78,000 and 85,000 bopd.
• TEN development delivered on time and on budget in August 2016; 2017 gross forecast of 50,000 bopd. Drilling is expected to resume in 2018 after the ITLOS ruling which is expected in late 2017.
• Jubilee field 2017 net production forecast of 36,300 bopd, including insured barrels; Turret Remediation Project making good progress with costs being offset by insurance payments.
• Uganda deal provides upfront cash and deferred payments to cover upstream and pipeline capex to first oil and beyond.
• Kenya exploration and appraisal programmes continue to support resource growth; Erut-1 oil discovery de-risks additional prospects in the north of the South Lokichar Basin.
• New Ventures activity delivers acreage in Zambia and Guyana; 2017 activity includes high impact Araku-1 well in Suriname and seismic campaigns in Mauritania, Kenya, Ghana, Jamaica, Uruguay and Guyana to identify future drilling candidates.