Paul McDade, CEO of Dublin-listed Tullow Oil, has described the group’s third quarter performance as “very solid” against a backdrop of “continued volatility” in the price of oil.
“We are generating high levels of free cash flow from our West African assets, making good progress towards project sanctions in East Africa and are finalising our 2019 exploration programme which we expect to include high-impact wells in Guyana,” Mr McDade said.
In a trading update today the group reported that all of its fields are producing “in line with expectations”.
Full year free cash flow at the company is forecast to be around $700m (€617m), including Uganda farm-down proceeds of $200m (€176m).
The group’s full year oil production is now expected to average between 87,000-91,000 barrels of oil per day.
Gas production is expected to average around 2,300 barrels per day for the full year.
Capital expenditure for the year is now estimated to be $430m, some $30m lower than earlier guidance on the back of savings and deferral of expenditures.
Meanwhile the company’s net debt and gearing is reducing from $3.5bn and 2.6x to around $2.8bn and around 1.8x respectively by year-end.
“Having taken the time to lay strong foundations for our business, embed a financially disciplined culture across the group and repair our balance sheet, we are now focused on delivering growth and returns to our shareholders,” Mr McDade added.
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