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Tullow’s TEN Project to deliver oil in “next three to six weeks”

Irish oil explorer Tullow Oil is expecting the TEN Project to deliver oil within the next three to six weeks – its first delivery oil since the company started the project three years ago.

In a trading update released to shareholders this morning Tullow chief executive Aidan Heavey also said that production at its Jubilee field has stabilised with a gross rate for June of around 90,000 barrels of oil per day.
“In East Africa, the Governments’ agreement that there will be separate pipelines to develop resources in Uganda and Kenya brings greater clarity to both projects.

“In addition in Kenya, a new programme of exploration wells focusing on growing resources is due to start in the fourth quarter. The New Ventures team remains focused on high grading and replenishing the exploration portfolio with a new licence signed in Zambia and ongoing portfolio management and seismic survey activity in South America,” Mr Heavey said.
The firm’s full year capital expenditure guidance has remained consistent at $1bn with some savings being offset by addition capex associated with an issue regarding its turret in the Jubilee field.

Tullow estimated net debt at the end of June stood at $4.7bn with unutilised debt capacity and free cash volumes of around $1bn.
In April the company completed a redetermination of its reserve based lending, securing available debt capacity of $3.5bn.

Tullow’s first repayment on its reserve based lending is due in October of this year, which is valued at around $500m.
During the first half of the year the company also agreed a year-long extension to the maturity of its corporate facility, bringing it up to April 2018.

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