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“Tullow has the right team, the right approach, the right assets and the funding in place to maintain its track record of success,” the independent oil and gas explorer and producer affirmed as it announced its results for the full year in 2012, rallying investors to its side on the London Stock Exchange, early morning trading on Wednesday.
The FTSE 100 firm emphasized it is exploration-led in its strategy and highlighted its 74% success rate in exploration and appraisal, including a discovery of a major hydrocarbon basin in Kenya, Tullow’s fourth major discovery in six years.
Between January and December, Tullow dug 46 wells and spent nearly US$1 billion and 2013 will be no different as over 40 wells are planned to be drilled, the majority of which will be in its Africa and the Atlantic Margins, the new center of Tullow’s exploration programme for the current year.
Tullow had earlier announced its intention to reshape its portfolio to focus on oil exploration, putting its gas assets in the North Sea for sale in December.
“These assets have served Tullow well, providing vital cash flow to fund an ambitious exploration programme, but they no longer fit with the Group’s strategy of pursuing big oil exploration opportunities in Africa and the Atlantic Margins,” it said.
Chief Executive, Aidan Heavey, said the firm is financially capable of undertaking what he referred as an “ambitious” exploration programme pointing to a strong balance sheet.
At 11:00 GMT, share of Tullow gained 64 pence, or 5.4%, to £12.44, as the company declared 12 pence dividend for the past year, the same as that in 2011 despite a 3% drop in after tax profit to US$666 million.
Revenue was slightly increased by 2% to US$2.344 billion, backed by an average selling price of US$108 a barrel, despite the volatile commodity market. Operating profit, however, was reduced by asset write-offs and higher operating costs in mature oilfields.
“At the beginning of 2013, Tullow has an exceptionally strong platform for future growth and is well placed to drive the strategy and the business forward,” Tullow stated.
