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Tullow cuts output target and its revenue forecasts

<div>OIL explorer Tullow Oil slashed its full-year output target yesterday, and said revenue in the first half would slump by 23 per cent to &pound;290m, as low oil prices hit the sector.<br /><br />&ldquo;The reduction is due to the lower sales volumes and most significantly the reduction in realised commodity prices during the first half of 2009,&rdquo; the company said in a trading update.<br /><br />The company reduced its full-year average production guidance to 58,000 barrels of oil per day (boepd) from 60,000 boepd.<br /><br />&ldquo;The forecast has been impacted by mixed results from infill wells in the UK, partly offset by higher production in Africa,&rdquo; Tullow said.<br /><br />Numis Securities said first-half production was short of its 62,000 boepd estimate.<br /><br />Tullow said realised commodity prices were significantly below the 2008 levels.<br /><br />The price of oil slumped to as low as $40 a barrel earlier this year, from highs of $150 a barrel last July, while gas prices have also dropped.<br /><br />Shares in Tullow Oil fell 3 per cent to 864p.</div>