ANALYST VIEWS: HOW WERE TULLOW RESULTS?

 
Marion Dakers
JOB LONGBROEK | DAVY STOCKBROKERS
Exploration continues to be a major source of new value for the group. During the year, it participated in 29 wells with an 83 per cent success rate. If we take into account Ghanaian discoveries and the hopefully reinvigorated Ugandan business, output net to Tullow of significantly over 200,000 barrels per day is possible, changing the group’s profile entirely.

RICHARD GRIFFITH | EVOLUTION SECURITIES
Tullow had a very good 2010: reserves and resources increasing 60 per cent, its first deepwater development offshore Ghana started up on time and had an 83 per cent exploration success. Yet the shares are only up 15 per cent year on year, reflecting how the Ugandan issue has dragged on the stock.

CHARLIE SHARP | MATRIX
The financials were a smidge lower than expected but primarily due to higher finance charges. The Julbilee field is performing just about in line with expectations, although the ramp up to 120,000 barrels of oil per day is a tad slower than initially expected. Still no resolution on Uganda, nor any indication of timing. This should not be a surprise, but pressure will mount to sort this quickly now that the election is over.