Tullow - comment

Tullow released its July trading statement (H1 numbers will be released in mid-September) and the only surprise was an accompanying conference call. The release itself had very little new information, with production in line with expectations and guidance. Tullow reiterated its full-year cash flow. The Q&A focused on the proposed merger but very little information was given except the merger circular to be released in Q4 ahead of shareholder votes by year-end. Additionally, the Company will hold a capital markets day in Autumn prior to the release of the circular.

Away from the merger, drilling continues ahead of schedule. There was no update on the farm down of the Kenyan operations and/or the potential upside from a new commercial agreement on the associated gas from the Ghanian fields.