Tullow Oil this morning reported a 56 per cent drop in first half pretax profit as lower realised gas prices failed to offset a rise in production.
The company reported pretax profit for the six months to June 30th of £66.6 million (€98 million), down from £153.1 million last time as sales dipped 8 per cent to £284.9 million.
Net profit came in below expectations at £36.6 million, down from £95.4 million last time, while consensus estimates provided by the company had expected net profit of £51 million.
The plunge in profit was a result of lower realised UK gas prices, which dropped 31 per cent in the first half to 36.85 pence per therm, and which offset an 11 per cent rise in production to 69,700 barrels of oil equivalent per day.
Tullow said it will spend £190 million on worldwide exploration in 2007 and will participate in at least seven wells through the remainder of the year in Ghana, Gabon and Uganda.
A exploration programme in India and Pakistan is also expected to start in the fourth quarter.