Africa Oil Corp (AOIFF)

[douginil]

Tullow Oil plc (Tullow) issues the following Trading Update for the period 26 July to 15 November 2018.

Published on: 15 November 2018

Trading Update summary

- All fields producing in line with expectations, full year oil production guidance narrowed to 87-91,000 bopd
- Full year free cash flow forecast to be c.$700 million, including Uganda farm-down proceeds of $200m, with net debt and gearing reducing from $3.5 billion and 2.6x to c.$2.8 billion and c.1.8x respectively by year-end
- Four new infill wells in Ghana expected to be on line by early 2019, increasing gross production to around 180,000 bopd
- Uganda farm-down expected to close around year-end 2018; development work on track with FID targeted for first half 2019

- Kenya Foundation Stage development to include the Ngamia, Amosing and Twiga fields; targeting FID in late 2019
- Cormorant-1 wildcat well drilled in Namibia for net cost below $5 million; no significant reservoir quality rocks encountered

- Multiple attractive prospects identified in Guyana acreage with drilling programme expected to commence in mid-2019

EAST AFRICA
Kenya

Good progress continues to be made on the Kenya development project. The upstream and pipeline Front End Engineering and Design work is progressing to plan and is expected to be completed in the first quarter of 2019. Environmental and Social Impact Assessments are also on schedule for submission to the regulators in the second quarter of 2019. Following the completion of all field work, including the production and water injection trials, and further subsurface analysis, the decision has also been taken to include the Twiga field alongside the Ngamia and Amosing fields in the Foundation Stage development. Tullow, its Joint Venture Partners and the Government of Kenya remain focused on targeting FID in late 2019 and First Oil in 2022.

The transfer of stored crude oil from Turkana to Mombasa by road continues as part of the Early Oil Pilot Scheme with four trucks continuing to be dispatched every two days, transporting approximately 600 bopd. To date, approximately 30,000 barrels of oil have been transported to Mombasa. The first lifting of sweet Kenyan crude oil stored in Mombasa is expected in the second quarter of 2019.



Read More at
https://www.tullowoil.com/media/press-releases/november-trading-update-2018