North Sea oil firm Tullow says it expects to add more than 200million barrels of oil to its reserves this year – despite seeing saw post-tax profits drop dramatically in 2013.
The firm saw profit before tax fall from $1.1billion to £381million this year – down 72% – while after-tax profits dropped 68% to $216million. But the company’s gross profit was up 7% to $1.4billion and sales revenues increased by 13% to $2.6billion on the previous year
2012’s figures were boosted by the gain on a near-$3billion farmdown on its operations in Uganda, while the company saw its exploration costs and write-offs increase by more than $200million dollars.
The exploration paid off for the firm, however, which broke its target of adding 200million barrels extra to its resources – with chief executive Aidan Heavey now targeting similar levels of success for 2014 after earmarking $1billion for exploration costs in Africa and Norway.
“The group delivered another year of exploration and appraisal success and production growth and made significant progress with its key developments in Ghana, Kenya and Uganda which will deliver major increases in cash flow over the next three to five years,” he said.
“An ambitious exploration and appraisal programme is planned for 2014 which is targeting opportunities in our core plays in Africa and the Atlantic margins.
“As with previous years, we are aiming for resource additions of over 200mmboe and we are well placed for an exciting year of growth in 2014 with an enviable portfolio of assets and opportunities.”
One area the firm says it expects to find success is in Mauritania, following the start of its exploration campaign there last year.
The first well on its licence there, Frégate-1, turned up 30m of net gas condensate and oil sands, with Tullow now believing it has established a new oil play off the country’s coast.
“Whilst encouraging, further assessment and analysis will be required before follow up activities,” the company said in a statement.
The company, which has been linked with a takeover by major oil firms in recent weeks, said its UK production for the year had been boosted following the successful work on the Schooner-11 well, which is producing 35million standard cubic feet of gas per day, while work on the Vincent find in the Dutch North Sea looks to have opened up a major gas column.
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