Tullow drills into first-half loss

Suzie Neuwirth
TULLOW Oil yesterday revealed a $95m (£56m) first-half loss after tax due to exploration write-offs of $402m.

A string of exploration failures in Mauritania, Ethiopia and Norway, combined with a $114m loss on a Ugandan farm-down agreement, pushed the fourth largest energy explorer listed on the London Stock Exchange into the red, compared to a post-tax profit of $313m in the first half of 2013.

The results were broadly in line with analysts’ expectations.

Production fell 12 per cent to 78,400 barrels of oil in the first half, short of Tullow’s full-year guidance of 79,000-85,000 bopd.

The company is pushing ahead with more exploration work in a bid to turn around its fortunes.

“In the first half of 2014, Tullow made further important discoveries in Kenya and Norway and we have a concentrated exploration campaign planned for the next 18 months,” said chief executive Aidan Heavey.

“We have also made good progress with the TEN project in Ghana, with our discussions with host governments on our developments in East Africa and with our financing.”

Shares closed 1.1 per cent lower at 755.5p.

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