Tullow’s overall performance for 2019 was “disappointing”

Mar 29, 2020 News

– Poor discoveries in Guyana served as a further set-back –Executive Chair

The Executive Board for British exploration company, Tullow is disappointed with the operational and financial performance as well as the overall executive leadership of Tullow’s business in 2019.

Tullow Oil’s Executive Chair, Dorothy Thompson

This was noted by the operator’s Executive Chair, Dorothy Thompson, in her statement for the company’s 2019 Annual Report and Accounts.
On behalf of the Board, Thompson issued an apology to investors for this poor performance. Speaking to the areas of concern, Thompson noted that production in Ghana fell short of expectations. In addition, she said that the company was unable to proceed with its planned farm-down in Uganda, while noting that the lower quality of oil found in the Jethro and Joe discoveries in Guyana’s Orinduik Block was a further setback. The Executive Chair said that the results were ultimately disappointing for investors and left them frustrated.
In the 2019 Annual Report and Accounts, it was noted that Tullow completed a three-well exploration campaign in Guyana in 2019, drilling the Jethro-1 and Joe-1 wells in the Tullow-operated Orinduik licence and the Carapa-1 well in the non-operated Kanuku licence.
In the Orinduik Block, the Jethro-1 and Joe-1 wells discovered 55 metres and 14 metres of net oil pay, respectively in Tertiary-age reservoirs. Tullow in the report noted that full analysis of the oil found indicated both deepwater discoveries contained heavy oil with high sulphur content.
In the Kanuku Block, operated by Repsol, the Carapa-1 well drilled in a water depth of 80 metres discovered four metres of net oil pay containing good quality low sulphur oil, but in poorly developed reservoirs of Cretaceous age. The Carapa-1 well confirmed the extension of the prolific lighter oil hydrocarbon play in the Stabroek Block, which is adjacent to Tullow’s acreage.
The report noted that the next steps in Guyana will be to integrate the three well results into updated geological and geophysical models, with a focus on the high-grading of the Cretaceous portfolio where better quality oil is expected across both the Kanuku and Orinduik blocks.
So far in 2020, Tullow has drilled one exploration well in Peru, which did not make a commercial discovery. Tullow’s Executive Chair said that the company will also be drilling in Suriname as well as thinking carefully about how to proceed in Guyana.

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