Tullow - comment

Tullow are holding their AGM today (11 am) and released a short trading statement,in line with our model and Company guidance. Points to note are that the first of five Jubilee wells to be brought on this year came online in early May, at initial rates of 17,000 boepd, ahead of expectations.

As shown in our model, H1 production is going to be light, due to bringing on new wells in H2 plus the water injection issue, rectified in February. The Company reiterated its mid-term guidance of reducing gearing to below 1x by 2025. In the near term, the Company remains confident to increase Jubilee's Gross production to over 100,000 boepd, in line with our model. In addition, it is interesting that the statement states that the Board remain confident that a long-term gas supply agreement with the Ghana government is achievable, unlocking another revenue stream for Tullow and its partners in Ghana. We have not included any gas sales in our FY23 and FY24 projections.