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Tullow Oil plc (Tullow), the independent oil and gas exploration and production group, announces its results for the year ended 31 December 2008.

Results summary

Tullow has maintained its outstanding exploration record and made excellent progress in developing its world-class basins in Ghana and Uganda. The Group has significantly strengthened the balance sheet with asset sales in 2008, and an equity placing and a major debt financing early in 2009.

   2008  2007 Change 
 Sales revenue ($m)  692  693  +8%
 Operating profit ($m)  300  189  +59%
 Profit before tax ($m)  299  114  +162%
 Profit after tax ($m)  226  53  +330%
 Basic earnings per share (pence)  30.9  7.1   +335%
 Interim dividend per share (pence)  4.0  4.0  +0%
 Operating cash flow before working capital ($m)  519  474  +9%
 Production (boepd, working interest basis)  66,600  73,100   -9%
 Realised oil price per bbl (US$)  73.6  62.7  +17%
 Realised gas price per therm (pence)  52.4  37.3  +40%

Download Tullow Oil plc 2008 Full year Results (PDF, 3.69MB, opens in a new window)

Key highlights

  • Record sales revenue, cash flow and profit
  • Record reserves replacement of 582%; Resource base now 825 mmboe
  • Outstanding exploration performance – 17 discoveries from 22 wells
  • Portfolio management post-tax profit of £244 million on disposals
  • Exploration and impairment write off of £253 million
  • Major new discovery at Tweneboa in 2009 continues 100% success record in Ghana
  • Jubilee development remains on track for first oil in 2H 2010
  • Commercial threshold for development in Uganda comfortably exceeded
  • High impact Ngassa-2 well in Uganda to commence drilling in March 2009
  • US$2 billion bank facility secured and £402 million equity placing completed in 2009

Commenting today, Aidan Heavey, Chief Executive, said:

“We have had our best year ever in 2008, when unprecedented success with the drill bit was matched by material progress towards the development of two major new oil provinces. We have delivered record results and significantly increased our resource base. Looking ahead, Tullow has the right people and funding in place to continue to develop our world-class assets and deliver strong and sustainable returns for shareholders. We’ve made a strong start in 2009 and it promises to be an exciting and challenging year. Overall we’re in excellent shape to deliver the Group’s next phase of growth.”

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