Tullow - Sarria Daily Comments 08/11/2021

TULLOW — (Tomás) Kosmos released production numbers for the Ghanian fields this morning as part of their Q3 results. Tullow only report semi-annually but are due to a trading statement on the 17th). The production numbers are consistent with the narrative of improving production numbers at Jubilee (Q3 at 77.8k bopd versus Q2 70.9k) and declining TEN production numbers (Q3 at 30.4 bopd versus Q2 35k).

More importantly, the four drills planned for FY21 are progressing as planned with three already completed and Kosmos expecting the fourth to be operational by end of year (Tullow expect it to slip to Q122). The first Jubilee Producer Well (J-56P) came online in early Q2 which has added 10k bopd gross. The second, a Jubilee injector well (J-55W) came online end of Q3 and is already supporting increased production levels. the fourth well is expected be drilled in Q4 which will add an additional 5k bopd gross. The third drill was a gas injector at TEN, which came online early in October, and although no update, positively or negatively, is expected to add pressure support to the Ntomme field.

Just as important as the drilling program, the Ghanian fields are maintaining high reliability, with uptimes at both fields averaging around 98% with consistently high levels of water injection and gas offtake optimising reservoir performance at Jubilee.

Kosmos has made no comment on Tullow’s pre-emption rights which are due to expiry end of this week. As previously stated, we fully expect Tullow to take up their rights. We will listen to the conference call at 4 pm today but do not expect Kosmos to make any comment about the pre-emption rights.