Tullow Oil plc Presents 2016 Full Year Results

Tullow Oil plc Presents 2016 Full Year Results

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. tullow2COMMENTING, 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.”
    Board changes, AGM and dividend
On 11 January 2017, Tullow announced that Paul McDade, currently COO, will be appointed as CEO and Aidan Heavey, currently CEO, will be appointed as Chairman, effective after the Group’s AGM in 2017. Simon Thompson, Chairman, and Ann Grant, senior independent director (SID), will retire at the AGM with Jeremy Wilson replacing Ms Grant as SID. Graham Martin retired as executive director at the 2016 AGM. Tullow’s AGM will take place on 26 April 2017 at 12pm at the Company’s offices at Building 9, Chiswick Park, 566 Chiswick High Road, London, W4 5XT. In view of current financial constraints, the Board is again recommending that no dividend is paid. At a time when Tullow is focusing on capital allocation, financial flexibility and cost reductions, the Board believes that Tullow and its shareholders are better served by retaining funds in the business.
    Production
Tullow’s West Africa 2016 oil production was in line with recent guidance averaging 65,500 bopd. This includes 4,600 bopd of production-equivalent payments relating to the Jubilee field received under Tullow’s corporate Business Interruption insurance policy. In Europe, assets performed in line with expectations and full year working interest gas production averaged 6,200 boepd. In 2017, West Africa working interest oil production, including production-equivalent insurance payments, is expected to average between 78,000 and 85,000 bopd. Europe working interest gas production is expected to average between 6,000 and 7,000 boepd. Source/ More On: Tullow Oil plc oilandgasOil and Gas News Undiluted !!! “The squeaky wheel gets the oil” Follow us: @OilAndGasPress on Twitter | OilAndGasPress on Facebook ]]>

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