SA News • Thu, Jan. 22
Tullow Oil - Look Forward To Closing The Gap
- Tullow Oil's share price has underperformed its peers by 25% ytd on weak exploration and should catch up as the drilling outlook improves.
- The company is well financed, and existing operations provide stable cash flows.
- Reiterated guidance and recent Norway find will reassure markets, focus will return on improving quality of growth assets in Africa.
Thu, Jan. 22, 9:42 AM
- Tullow Oil (OTCPK:TUWLF, OTCPK:TUWOY) says it has abandoned one well, started drilling another well and completed drilling on three wells at three onshore blocks in Kenya.
- Tullow says it has abandoned its Epir-1 exploration well in the North Kerio Basin but found enough oil and gas in the well to consider further exploration activities in the basin.
- Tullow also says it has started drilling the Engomo-1 well in the North Turkana Basin, where numerous naturally occurring oil slicks and seeps have been observed.
Thu, Jan. 15, 8:17 AM
- Tullow Oil (OTCPK:TUWLF, OTCPK:TUWOY) says it will write off $2.2B (£1.45bn) and cut its 2015 exploration budget by 30% to $200M as a direct result of the oil price collapse.
- The writeoffs include a decrease in value of $600M across all of Tullow's assets, including producing oil fields, oil in the ground and equipment, as well as $1.2B related to earlier discoveries that now have no prospect of commercialization amid weaker oil prices and unsuccessful exploration drilling.
- Tullow says it expects 2014 revenue of $2.2B and pretax operating cash flow of $1.5B, supported by strong performance of its west Africa oil production.
- Shares are up 1.5% in London trading, as the company’s "fundamental long-term production/cash flow growth story remains intact," according to one analyst.
Fri, Jan. 2, 2:55 PM
- Europe largely missed out on last year's $383B in oil and gas sector M&A activity, but Europe likely will get a bigger piece of the action in 2015 if current oil prices persist, according to Reuters' Fiona Maharg-Bravo.
- Net debt at smaller explorers such as Tullow Oil (OTCPK:TUWLF, OTCPK:TUWOY), Premier Oil (OTC:PMOIF), Afren (OTCPK:AFRNF) and EnQuest (OTC:ENQUF) could all reach 3x EBITDA if oil remains at $60/bbl through 2015, Barclays estimates.
- BG Group (OTCPK:BRGXF, OTCQX:BRGYY) has long been a target, and the new CEO starts in March; BP faces big liabilities in the Gulf of Mexico and volatility in Russia, it’s not clear if Shell (RDS.A, RDS.B) will make a move, while Exxon (NYSE:XOM) and other U.S. majors could be tempted.
Dec. 12, 2014, 12:27 PM
- China's Cnooc (CEO -0.9%) says the development of its $2B Kingfisher oil field in Uganda remains on course, and that on-site activity, including test drilling and construction of access routes to the 635M bbl field, are progressing well.
- Tumbling global crude prices have raised concerns that some projects in east Africa may be put on hold; the region accounted for ~25% of new oil and gas discoveries worldwide over the past four years.
- Cnooc co-owns the field with Tullow Oil (OTCPK:TUWLF, OTCPK:TUWOY) and Total (NYSE:TOT).
Dec. 3, 2014, 7:58 AM
- The plunge in oil prices has erased more than half of Tullow Oil’s (OTCPK:TUWLF, OTCPK:TUWOY) market value since June, and Bloomberg reports that management is now concerned the company could be vulnerable to a takeover approach by a larger oil and gas producer.
- Tullow offers “a significant operating position that would not look out of place in the portfolio of a larger company,” says Societe Generale's David Mirzai, adding that the drop in oil prices “would certainly make it a lot easier to win the investor base around than in previous years.”
- Total (NYSE:TOT), Cnooc (NYSE:CEO) and Exxon (NYSE:XOM) would be among logical bidders since they’ve expressed interest in African assets before, BMO says, adding that a buyer would not need to contend with obstacles such as a poison pill or dual-class stock structure.
Nov. 12, 2014, 10:50 AM
- Tullow Oil (OTCPK:TUWLF, OTCPK:TUWOY) says it will cut exploration spending by $1.4B over the next two years to focus on producing and development assets, as it deals with the consequences of falling oil prices and a string of disappointing offshore exploration results.
- Tullow plans to focus its exploration and appraisal activity primarily on Uganda and Kenya in east Africa, and its capital spending on producing assets such as its Jubilee project in Ghana, where it expects to reach production of 120K bbl/day by Q4 of next year.
- The company is reviewing operations in French Guiana and Mauritania, which Barclays analysts say could result in an $850M non-cash impairment charge.
Nov. 4, 2014, 8:59 AM
- Stocks in European energy companies are hit hard following Saudi Arabia's move yesterday to cut prices for crude sold in the U.S., sending oil prices tumbling.
- Seadrill (NYSE:SDRL) sank more than 6% to the bottom of the Stoxx Europe 600 index; BP, Royal Dutch Shell (RDS.A, RDS.B), Total (NYSE:TOT), Statoil (NYSE:STO), Tullow Oil (OTCPK:TUWLF, OTCPK:TUWOY) and BG Group (OTCPK:BRGXF, OTCQX:BRGYY) are all more than 2% lower.
- Oil prices are sharply lower again today, with Brent crude falling to four-year lows near $82/bbl and U.S. crude touching a session low of $75.84, its weakest since Oct. 2011.
Oct. 16, 2014, 2:32 PM
- Tullow Oil (OTCPK:TUWLF, OTCPK:TUWOY) and partners including Anadarko Petroleum (NYSE:APC) and Kosmos Energy (NYSE:KOS) are planning to invest $2.2B next year to drill wells in Ghana’s Jubilee and Tweneboa-Enyenra-Ntomme, or TEN, oil fields, the deputy general manager of Tullow Oil Ghana says.
- The partners plan to invest $20B over the next decade to boost the country's crude oil output to 500K bbl/day from 103K now.
- Tullow, the operator of the projects, plans to drill two wells in the TEN field and as many as three wells at Jubilee.
Oct. 15, 2014, 10:19 AM
- Ethiopia will grant Tullow Oil (OTCPK:TUWLF, OTCPK:TUWOY) an extension to its exploration license after the company reported “encouraging” results in its search so far, the country's mining minister says.
- Tullow had requested more time to analyze data from drilling and seismic surveys in southern Ethiopia after two out of four wells it drilled in the past two years, along with partners Marathon Oil (NYSE:MRO) and Africa Oil (OTCPK:AOIFF), show they may contain petroleum deposits.
- No oil or gas is currently produced by Ethiopia.
Sep. 2, 2014, 2:15 PM
- Russia's Lukoil (OTCPK:LUKOY, OTC:LUKOF) has made a discovery at Ghana’s offshore Cape Three Points project, Bloomberg reports.
- Ghana and its partners, including Tullow Oil (OTCPK:TUWLF, OTCPK:TUWOY) and Anadarko Petroleum (NYSE:APC), plan to spend $20B in the next decade to boost oil production to 500K bbl/day from current output of ~100K bbl/day.
- If commercially viable, the Lukoil find would be Ghana’s fifth planned offshore field.
Aug. 20, 2014, 10:36 AM
- Ghana's government says it expects a fourth offshore development by Hess (HES -0.1%) to join the country’s project pipeline.
- Hess already plans to drill a third appraisal well later this year on the Deepwater Tano/Cape Three Points block to establish commercial viability and reserves, according to a government official, after strong results at two initial wells.
- Ghana hopes to increase oil output to 500K bbl/day in the next decade as projects including Tullow Oil’s (OTCPK:TUWLF, OTCPK:TUWOY) TEN and Eni’s (NYSE:E) Sankofa-Gye Nyame start production; the two fields are expected to be developed within the next three years, with combined output of ~130K bbl/day.
Jul. 30, 2014, 10:29 AM
- Tullow Oil (OTCPK:TUWLF, OTCPK:TUWOY) says it swung to a net loss of ~$75M in H1, largely due to a sharp increase in writeoffs of exploration costs associated with exploration and appraisal activities in Norway, Mauritania and Ethiopia this year and in prior years.
- Revenue fell 6% Y/Y to $1.265B, mostly due to a 7% loss in sales volumes from the disposal last year of assets in Bangladesh and Gabon.
- Q2 production fell 12% to 78.4K boe/day from 88.6K boe/day in the year-ago quarter.
- Says its effort to sell part of its 50% stake in the $4.9B Ghana TEN oil project has slowed, reflecting weaker conditions in the market for sellers of oil assets.
- Says it is making an exit from Sierra Leone and Liberia, while also revealing an onshore discovery in Gabon.
Jul. 16, 2014, 12:34 PM
- Uganda's tax appeals tribunal orders Tullow Oil (OTCPK:TUWLF, OTCPK:TUWOY) to pay a tax bill amounting to $407M to the government from the sale of its oil assets in the country three years ago.
- Tullow objected to the assessment on the sale and challenged the matter at the tax tribunal, after paying 30% of the assessed tax.
- Tax disputes from the sales have been blamed for delaying the development of Uganda's oil fields, which may contain as much as 3.5B barrels of crude.
Jul. 2, 2014, 8:51 AM
- Tullow Oil (TUWLF, TUWOY) expects to deliver H1 revenue and gross profit in line with expectations, despite booking a $415M pre-tax writeoff in net exploration and expects a $115M loss on disposals after drilling dry holes in Mauritania, Ethiopia and Norway.
- Despite the disappointing drilling results in some areas, Tullow maintains its full-year production guidance of 79K-85K boe/day, expects production at the Jubilee oil field in Ghana to remain at 100K bbl/day of oil, while says its TEN project in Ghana is on track for first oil deliveries in mid-2016.
- Gross H1 profit came to $650M and revenue reached $1.3B, in line with the company's expectations.
Jun. 24, 2014, 8:20 AM
- Tullow Oil (TUWLF, TUWOY) says Africa Oil (AOIFF), its partner in Blocks 10BB and 13T in northern Kenya, has found high-quality oil reservoirs at the Ngamia-2 exploratory appraisal well.
- Tullow says Ngamia-2, which was drilled a mile from the Ngamia-1 discovery well, found 128 ft. of net oil pay and 36 ft. of net gas pay.
- Work on the well has been suspended for testing and up to four additional appraisal wells will be drilled in the Ngamia area for an extended testing program.
Jun. 10, 2014, 5:58 PM
- A Ghana court has ordered state-run Ghana Gas to stop construction at a $650M gas plant designed to process gas from the offshore Jubilee field until the government pays land compensation to local chiefs.
- The government hopes the project's completion will boost power supply and help reduce spending on light crude imports for thermal power generation.
- Tullow Oil (TUWLF, TUWOY) is the lead operator of the Jubilee field; partners include Anadarko Petroleum (APC) and Kosmos Energy (KOS).
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