Tullow Oil plc (LON:TLW) issued the following Trading Update for the period 1 January to 25 April 2019. This statement is issued in advance of the Group’s Annual General Meeting (AGM) which is being held at Tullow Oil plc, Building 9, Chiswick Park, London, W4 5XT at 12pm today. The Group will announce its Trading Statement and Operational Update on 26 June 2019 and Half Year Results will be announced on 24 July 2019.
PAUL MCDADE, CHIEF EXECUTIVE OFFICER, TULLOW OIL PLC, COMMENTED TODAY:
“At today’s AGM, the Board will be asking Tullow shareholders to approve the Group’s first dividend payment since 2014. This 2018 final dividend and our new dividend policy, which is expected to deliver at least $100 million per year to shareholders, reflect the financial and operational progress that Tullow has made over the past few years. Oil production from our West African portfolio is currently running at 95,000 bopd after a short-term production issue in the first quarter and is due to grow in the second half of the year and beyond. In South America, our exploration team is busy preparing for our exciting exploration campaign in Guyana.”
Trading Update summary
· First quarter 2019 Group oil production averaged 84,600 bopd. This was below expectations following technical issues, now resolved, in Ghana. Group full year oil production guidance revised to 90,000 – 98,000 bopd
· Current net production is c.95,000 bopd and is expected to rise to 100,000 bopd as additional Ghana wells come on stream
· Three-well exploration programme in Guyana to commence in June 2019 with the drilling of the Jethro and Joe prospects on the operated Orinduik licence. The Carapa well on the non-operated Kanuku licence is anticipated to commence 3Q 2019
· At 31 March 2019, net debt was $3 billion with $1 billion of liquidity headroom and no near-term debt maturities
· 2018 final recommended dividend of 4.8¢/share (c.$67 million). New dividend policy of no less than $100 million per annum
· Uganda FID planned for the second half of 2019; farm-down approval being finalised with Government of Uganda
· Project Oil Kenya development continues to progress; late 2019 FID contingent on key Government of Kenya deliverables
· Three new licences won in the Malvinas West Basin in the recent Argentina bid round with work due to begin in 2020
· Sheila Khama and Genevieve Sangudi to join Tullow’s Board as Non-Executive Directors. Tutu Agyare retires from the Board after nine years’ much-valued service
Board Update
On 28 February 2019, Tullow announced that Tutu Agyare will resign as a Non-Executive Director, with effect from the conclusion of today’s AGM. Tutu joined Tullow in 2010 as a Non-Executive Director and has provided significant support and insight to Tullow and has been a member of several Board committees, including chairing the Remuneration Committee for the past two years. Tullow also announced the appointment of Sheila Khama and Genevieve Sangudi as Non-Executive Directors of Tullow with effect from 26 April 2019. Sheila and Genevieve will stand for election to the Board at the 2020 AGM.
