01/15/2020 | Press release | Distributed by Public on 01/15/2020 01:05
Published on: 15 January 2020
Tullow Oil plc (Tullow) issues this update and guidance in advance of the Group's 2019 Full Year Results.
The information contained herein has not been audited and may be subject to further review and amendment. Tullow will hold a conference call at 8:30am today, please see below for details.
Dorothy Thompson, Executive Chair, Tullow Oil plc, commented today:
'Tullow has ended 2019 with average production of 86,700 bopd and free cash flow generation of c.$350 million. Since our December announcement, Tullow's senior team has been working hard on a major review focused on delivering a more efficient and effective organisation. The fundamentals of our business remain intact: recent reserves audits demonstrate that we have a solid underlying reserves and resources base in West and East Africa, our producing assets continue to generate good cash flow and we retain a high-quality exploration portfolio. The Board and senior management are confident of the long-term potential of the portfolio and see meaningful opportunities to improve operational performance, reduce our cost base, deliver sustainable free cash flow and reduce our debt.'
Financial and operational update
Group reserves and resources
In late 2018, Tullow appointed TRACS as its independent reserves auditor. Over the course of 2019, over 95% of the Group's reserves and resources have been audited and the results underpin the quality of the asset base. Group net 2P reserves at year-end 2019 are 245 mmboe (2018: 280 mmboe). Excluding the impact of 2019 production (31 mmboe), reserves are largely unchanged year-on-year and reflects an increase in reserves at the Jubilee field and non-operated assets, offset by a reduction in reserves at the Enyenra field at TEN. Group net 2C resources have increased to 1,102 mmboe (2018: 874 mmboe), largely driven by additions in Ghana. Tullow will publish its full audited reserves and resources with its 2019 Full Year Results.
Business Review update & reporting timetable
The Board's business review covering all areas of Tullow's operations, cost-base and reporting is progressing well. The Board is confident that the outcomes will deliver significant improvements to the Group's organisational structure, major reductions in G&A and a more efficient and effective business. Actions taken in December included the implementation of a smaller, more focused interim Executive team and initial restructuring of the next level of leadership. Since then, work has focused on simplifying the structure of the organisation and these changes will be implemented in the coming months. The next phase of the review will focus on the investment plans for each of the Group's major assets.
One of the decisions already made by the Board is to align the Group's reporting calendar to that of its E&P peers and, going forward, the Group will report its Full Year Results in March and its Half Year Result in September. The 2019 Full Year Results will be released on 12 March 2020. The new timetable will enable Tullow to report on the key outcomes of the ongoing business review in its Full Year Results and its 2019 Annual Report and Accounts.
The recruitment of a new Chief Executive Officer is well under way with the assistance of an executive search firm.
CONFERENCE CALL DETAILS:
8:30am UK time Wednesday 15 January:Conference ID: 5346287
From the UK:0844 481 9752
UK free phone: 0800 2796 619
Outside of the UK: +44 (0) 207 1928 338
Replay:Conference ID: 5346287
From the UK: 0844 571 8951
UK free phone: 0808 238 0667Outside of the UK: +44 (0) 3333 009 785