Tullow expects cashflow of $200m at crude price of $95 per barrel
Tullow said a shareholder prospectus for its planned merger with Capricorn Energy will likely be published in the fourth quarter, with a vote on the deal around the end of the year. In 2021, with lower oil prices, Tullow had a free cashflow of around US$245 million, boosted by the sale of its Ugandan assets.
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Tullow Oil said on Wednesday it expected to make US$200 million in free cashflow this year at an average oil price of US$95 a barrel, adding that it sees no cashflow in the first half after an arbitration payment and an acquisition.
Tullow said a shareholder prospectus for its planned merger with Capricorn Energy will likely be published in the fourth quarter, with a vote on the deal around the end of the year.
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In 2021, with lower oil prices, Tullow had a free cashflow of around US$245 million, boosted by the sale of its Ugandan assets.
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It is seeking an investor in its onshore oil project in Kenya, where a final investment decision is yet to be taken. Tullow said on Wednesday that it was confident it could make substantial progress in the second half of the year.
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It expects to produce between 59,000-65,000 barrels of oil equivalent per day this year.
Tullow has hedged 42,500 barrels per day (bpd) this year at an average floor and call prices of US$51 and US$78 a barrel and 33,100 bpd in 2023 and 11,300 bpd in 2024 at $55 and US$75 a barrel.
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