Tullow Confident after Strong Finish in 2009

Tullow Oil plc announced its results for the year ended December 31, 2009.

2009 Full year results

  • Continued exploration success
  • Results in line with market expectations
  • Poised for major production growth in Ghana and Uganda

Results summary

The reported financial results for 2009 are in line with market expectations and down compared with 2008. The successful completion of new debt facilities and equity placings, coupled with the proposed Uganda farmdown, are major steps in ensuring that the Group remains well funded to continue to execute its medium term exploration, appraisal and development programs.

Key highlights

  • Outstanding exploration performance: 13 discoveries from 15 wells
  • Major discoveries: Jobi-Rii (previously Buffalo-Giraffe) in Uganda; Tweneboa in Ghana
  • Venus wildcat result extends the Jubilee play to the Equatorial Atlantic Liberian and Guyana Basins
  • Total and Shell farm in to French Guiana supporting Jubilee play extension to South America
  • Exercised pre-emption over Heritage Oil's Ugandan sale in Jan 2010 for up to US$1.5 billion; CNOOC and Total proposed as new joint venture partners in Uganda to facilitate aligned and accelerated basin development
  • Jubilee project remains on schedule and on budget; first oil expected Q4 2010
  • US $2.25 billion debt facilities secured; £1.33 billion raised through equity placings in 2009 and 2010

Aidan Heavey, Chief Executive, said: "A strong performance in 2009 and an excellent start to 2010 has enabled the Group to continue to create material exploration and development opportunities. Although our 2009 reported results still reflect a period of financial transition, first oil in Ghana from the Jubilee field later this year will result in considerable production growth and increased cash flow. Our transformational exploration program continues apace with up to 30 wells planned for 2010. In Uganda we are working closely with the government and two potential new partners to accelerate development. Our future growth is well underpinned by a significantly strengthened capital structure and overall the performance prospects for the Group are very strong."