EXPLORATION GROUP Tullow Oil said yesterday it expected a "very positive" performance for the rest of 2008 as record oil and gas prices boost earnings.
"With production in line with expectations, a programme of over 25 exploration wells to drill by year-end, and optimism over strong oil and gas pricing continuing, the outlook for the remainder of 2008 is very positive," the London-based company said yesterday in a statement.
Tullow rose to a record 943.5pence on May 6th in London trading after the company said it had discovered a "significant column" of light oil off Ghana.
The find at the Mahogany-2 well indicates that the Jubilee oil field offshore Ghana extends over at least 11km, the company said last week.
Following the announcement, chief executive officer Aidan Heavey said the results were likely to lead to a "material upgrade" of Tullow's current resource estimates.
Tullow plans to focus on projects in Ghana and Uganda, potentially raising output to as much as 250,000 barrels of oil equivalent a day as soon as 2010, Mr Heavey said this year.
It expects to pump 70,000 to 74,000 barrels a day in 2008. An exploration well drilled by Tullow in Uganda discovered oil and gas, the company said yesterday.
"Strong commodity prices will help Tullow reduce its net debt," said Caren Crowley, a Dublin-based analyst at Davy.
The company reported net debt of £478 million at the end of the first quarter. - (Bloomberg)
