Tullow Oil will release a trading update on July 4th
We are not certain that the Ngamia-1 well will complete, but oil has already been intersected in a number of intervals in the well
Tullow Oil will release a trading update on July 4th to be followed by interim results at the end of July. Notwithstanding that the IMS on May 16th addressed most of the bigger outstanding issues, the operational update should – coming off a busy first half – contain a good deal of detail relevant to Tullow‘s investment case.
The update will provide a detailed breakdown of the group’s operational issues and performance over the past six months. On the exploration side, this is likely to focus on the success of the onshore African campaign in Kenya. We are not certain that the Ngamia-1 well will complete, but oil has already been intersected in a number of intervals in the well. We also expect updates on developments in the Guyanne and French Guiana drilling programmes, the latter all the more so given recent comments on permitting delays. The main development update should be on the TEN development offshore Ghana and the progress of the Uganda Basin-wide development plan now that the farm-out has been completed. On the production side, we expect more detail on the progress of efforts to remediate the Jubilee production profile (target output of 120,000 b/d). Early indications are that efforts have been successful and production is steadily building.
Tullow will likely provide a first look at the first-half revenue line. We expect this to be to be in the order of $1.1bn. Updates on net debt (US
.5bn) and the capital expenditure trend (2012 guidance of US$2.0bn) will also be provided. Details on dividend intentions are not normally included in the operational update.
For further detail, see our research note issued June 29th.