Exploration group Tullow Oil said yesterday it was on target to reach production levels of 75,000 barrels of oil equivalent per day (boepd) after initial production at one of its new Ivory Coast ventures was significantly ahead of expectations.
Tullow, which achieved on average 63,200 boepd in the first half of this year, said the first of five planned wells in the West Espoir development had come on stream at the end of last month and that the flow rates - of more than 5,000 boepd - were more than expected. Tullow has a 21.33 per cent interest in the project.
"First oil from the West Espoir development continues the strong organic production growth already seen from the group this year, building steadily towards our target of 75,000 boepd by year end," said Aidan Heavey, Tullow's chief executive. The West Espoir project is scheduled to reach peak production of 10,000 boepd in late 2007.
Tullow also said it has been awarded a 50 per cent operating interest in Block 1/06, a 3,800 sq km oil exploration concession in the Lower Congo Basin, offshore Angola.
As a result, Tullow said it expects to enter into a production-sharing contract with Sonangol, Angola's national oil company, to drill at the site which contains three undeveloped oil fields.
Mr Heavey welcomed the announcement, saying the group was "delighted" to further expand its offshore Angola portfolio.
Despite the positive news, Tullow shares fell. In London, the stock was down 2 per cent, at 397 pence, while in Dublin it slipped half a per cent, to €5.89.
