Tullow - comment

The Petroleum Commission, Ghana have updated their website with monthly production figures to June 2023, with Jubilee and TEN monthly figures equal to the numbers Tullow stated in mid-July.  We show the production numbers, gross, below in the graphs. In addition, the Commission has disclosed that the gas exported to the Ghanaian government, adjusted for Tullow’s share, equates to c. $4m a month to Tullow.  The flaring figures stated by the Commission look different to those quoted by the Company and we are investigating the difference.  

Separately, Tullow have extended its licenses to 2046 in Gabon.  Gabon hosts Tullow’s main non-operated assets, but these license extensions probably refer to assets that were swapped in Gabon in order to consolidate Tullow’s ownership. The license extensions were expected.

Conclusion: This is just more granular information that Tullow released in July.  Note that the highest Gross production at Jubilee is just above 80,000 boepd in June.  Jubilee produced over 100,000 in July and it is this step change in production that allows Tullow to guide FY23 production to 95,000 boepd.  The higher production numbers will translate into higher cash generation, which we fully expect the Company to pursue further tenders of their outstanding bonds in order to deleverage.