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Record half-yearly results

Continually building long-term business value

2008 Half-yearly results summary

The first half of 2008 has been outstanding for Tullow. The Group has delivered record financial results, an excellent exploration performance and material progress towards first oil from both the Jubilee field in Ghana and the EPS in Uganda.

  • Effective production management combined with very strong oil and gas pricing and profitable portfolio management generated record first half revenue, cash flow and profits;
  • Exploration and appraisal success in Ghana and Uganda will materially increase the Group’s resource base and has de-risked the significant upside potential of these major projects;
  • First gas was achieved from the Wissey field on 22 August and the field is now producing at approximately 70 mmscfd; and
  • Sale agreements have been reached for the disposal of the Group’s interests in the M’Boundi field in Congo (Brazzaville) and the Hewett-Bacton assets in the UK for a total cash consideration of £428 million, with a profit on disposal in the order of £370 million expected in fiscal 2008.

Download Tullow Oil plc 2008 Half yearly results (PDF, 402KB, opens in a new window)

   H1 2008  H1 2007  Change
 Production (boepd, working interest basis)  70,550  69,700  1%
 Realised oil price per bbl (US$)  80.11  56.09  43%
 Realised gas price (pence per therm)  51.71  36.86  40%
 Sales revenue (£m)  378.0  284.9  33%
 Operating profit (£m)  201.3  111.0  81%
 Profit before tax (£m)  187.3  66.6  181%
 Basic earnings per share (pence)  17.23  5.12  237%
 Interim dividend per share (pence)  2.0  2.0  Unchanged
 Operating cash flow before working capital (£m)  295.3  201.8  46%

2008 Outlook

  • In Ghana, Phase 1 of the Jubilee development will commercialise approximately 300 to 350 mmbo of reserves and is on track for first oil in the second half of 2010. MODEC has been selected to supply and operate the Floating Production Storage and Offloading (FPSO) vessel. Selection of the main subsea contractors is planned for September and project sanction is anticipated in late 2008;
  • Four deepwater rigs contracted for an integrated Ghana exploration, appraisal and development drilling campaign, which will re-commence in the third quarter;
  • In Uganda, the discovery of Kasamene and the appraisal of Kingfisher have identified substantial upside potential. Exploration and appraisal drilling in both of these regions is ongoing; and
  • 2008 average working interest production is now expected to be between 68,000 and 70,000 boepd.

Commenting today, Aidan Heavey, Chief Executive, said:

“Tullow continues to make superb progress and I am delighted to report today’s record results. Our Exploration, Production and Development teams delivered another excellent performance during the first half of the year, while successful portfolio management has strengthened our financial position. The next six months promise to be very exciting as our high impact exploration and appraisal campaigns in Ghana and Uganda gather momentum and we continue to build the long-term value of our business.”

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 22 of this announcement (view the full press release in PDF) and in the Results Centre on the Group’s website