Tullow Oil provides a combined Trading Statement in respect of the first half of the 2005 financial year and Operational Update in respect of Production, Development and Exploration activities during the period beginning April and ending July 2005. Tullow is quoted on the London and Irish Stock Exchanges (symbol: TLW) and is a constituent of the FTSE 250 Index. The Group has interests in over 90 production and exploration licenses in 16 countries and focuses on three core areas: NW Europe, West Africa and South Asia.
The Trading Statement is in advance of the Group's Interim Results, which are scheduled for release on September 14, 2005. The information contained herein has not been audited and is subject to further review.
- Trading during the first half was at record levels, with a strong production performance combining with continuing favorable oil and gas pricing.
Production and Reserve Enhancement
- In the first half of 2005, average Group working interest production increased to 57,350 boepd, more than double that of the same period in 2004 and 41% ahead of the average for 2004.
- Approximately 30 successful development and appraisal wells were drilled in the first half. Production levels continue to increase and are anticipated to average 60,000 boepd for the second half.
- Following the commencement of production from the Horne & Wren project on June 9, 2005, UK gas production is at an all time high of over 150 mmscfd.
- Gas discovery with the Opal well in the Southern North Sea close to Tullow-owned infrastructure; two further UK wells confirmed for second half.
- Tullow-operated three well exploration program in Gabon to commence in November.
- A minimum of eight exploration wells are confirmed in the drilling schedule for the second half of 2005 in all three core areas.
Acquisitions and Portfolio Management
The £200 million acquisition of the Schooner and Ketch producing assets completed on March 31. 2005, within three months of the deal being agreed.
Sale of Alba/Caledonia ($112 million/£59 million) completed in June and completion of offshore Congo ($72 million/£38 million) disposal imminent.
Commenting today, Aidan Heavey, Chief Executive of Tullow said:
"The first half of 2005 continues to show the benefits of the acquisition and development work undertaken over the last 12 months. Recent investments, such as Schooner and Ketch, are already contributing to performance, exploration activity is increasing and the outlook for the remainder of the year is very encouraging."
3. Infinity Marine Offshore Completes Accommodation Upgrade for ENSCO 76
Infinity Marine Offshore recently completed the renovation and addition for the ENSCO 76 at a shipyard in Sabine Pass, Texas. Work included the renovation of existing accommodations and the addition of 2 levels, 1 level for accommodations and another for a completely outfitted new control house. The ENSCO 76 has left the yard and is in route to Saudi Arabia.
The company is presently completing work on the ENSCO 89 at Amfels Shipyard, Brownsville, Texas. After demolition of existing accommodations, work includes the complete build out of all accommodation levels, inside electrical, flooring, plumbing, HVAC, galley, furnishings, and lighting.