Tullow Oil plc (Tullow) issues this Trading Statement and Operational Update in respect of the first half of the 2012 financial year ended 30 June 2012. This is in advance of the Group’s Half-Yearly Results, which are scheduled for release on 25 July 2012. The information contained herein has not been audited and is subject to further review.
Commenting, Aidan Heavey, Chief Executive Said:
“Tullow’s industry-leading exploration success has continued in the first half of 2012 with a major discovery in Kenya, the fourth new basin the Group has opened in five years. We have also completed the $2.9 billion farm-down in Uganda, and made good progress on our development projects in Ghana and Uganda. The on-going remediation of the Jubilee field is progressing well and significant exploration wells are planned for the East African Rift basins, the West African Transform Margin and the twin basins in South America in the second half of 2012. With an exciting programme ahead, Tullow is well placed for continued success over the remainder of the year.”
In CI-105 in Cote d’Ivoire, the Kosrou-1 well also encountered thick sandstone reservoirs with good oil shows but log analysis indicated that they were water bearing at this location and this licence has now been relinquished. This was followed by the successful Paon-1X exploration well in block CI-103 which discovered 31 metres of net oil pay in a high net-to-gross interval. This is likely to lead to further drilling in the Tullow operated licence within the next 12 months.
Whilst this exploration campaign has had mixed results so far the presence of oil shows together with thick reservoirs, albeit with oil pay in thinner reservoirs, remains encouraging for the overall exploration programme in the West African Equatorial Atlantic.