More on Tullow Oil
Tullow Oil: Trading statement
Tullow Oil, the independent oil exploration and production company said that trading in the first half of the year was at “record” levels, driven by a strong production performance and favourable oil and gas prices.
Group working interest production increased to 57,350 boepd, more than double that of the same period in 2004 and 41% ahead of the average for 2004. The company said 30 successful development and appraisal wells were drilled in the first half. Production levels are anticipated to average 60,000 boepd for the second half of the year.
A new gas field (the Horne & Wren project) commenced production on the 9th June 2005 and has pushed UK gas production to an all time high of over 150 mmscfd (million standard cubic feet per day).
The company continues to shuffle its portfolio, something that has added to shareholder value in the past. The disposal of Alba/Caledonia for £59m was completed in June and and the completion of the disposal of the offshore Congo interest (for £38m) is imminent.
Company prospects look sound, trading at 190p, the prospective PE of 14.3x is in line with the sector. The yield is low at 1.2% but not unexpectedly so in a growth stock.
Random picks: Acambis | Amvescap | Cable & Wireless | De La Rue | French Connection | Kesa | Minerva | Pendragon | Wellington Underwriting | Dana Petroleum