FYI20 Feb 2017 19:54
Some quotes in order from Tullow's recent statement/presentation and Q&A
'One of the key areas for growth in the business and we believe in the E&P business is exploration, and exploration is really where you can get transformational value growth in the business.'
'We have no specific forecast yet for 2018 though I can see us spending more money on high-impact exploration in West Africa but only as and when budgets allow.'
'We’ve already started generating positive free cash and delivering major portfolio management with further options available. And we’ve left the year with $1 billion worth of liquidity headroom from our actions taken throughout 2016 and are positioned for planned refinancing to start in the first half of 2017.'
'In our Frontier exploration, exciting prospects in Africa and South America, and I’m sure you are particular exciting set of opportunities that we have in what is probably the industry’s hottest spot at the moment, I said Guyana Suriname Basin where we’re extremely well positioned having anticipated this outcome several years ago, we have some great acreage and I’ll show what that’s leading to.
We’ve also got some great positions already in our portfolio in Mauritania and Namibia which should be working up. These low-cost material plays, meanwhile our new ventures team has been busy adding and working on adding new licenses based on these light-oil plays, so in-short, some very exciting transformational exploration opportunities, coming up.'
'This is just a map to summarize the activity outlook for 2017. You’ll notice that it’s a year of low-cost seismic to create the prospects for 2018/2019 and beyond. So you see seismic acquisition and processing in Guyana, Jamaica, Mauritania, Uruguay and Kenya. Some non-seismic methods in Zambia are planned.'
'So, Guyana, further to the West, this is our Orinduik and Kanuku license. You see the map on the left-hand side. With a cross-section there on the map from A to A-prime which goes from the shelf out and over the Liza field discovery by Exxon 2015.
Now, you’ll see on the section on the right-hand side, I’ve put a green lips around the Liza field in the deepwater there well over 2,000 meters of water whereas we’ve picked our acreage and our prospect in 100 meters of water. So this was a strategic move that we started to implement in 2013 or ‘14 to get these acreage positions to access these same very material plays.'
'But to do it in shallower water setting in order to reduce not only the exploration cost but also the development costs and improves the development economics. '
'And then finally, in Namibia, we got some great leads here identified. You can see the leads Osprey, Albatross, Cormorant, Seagull, etcetera. Turbidite fans, multiple cretaceous leads, high-quality 3D seismic survey. Now whilst this may look like a deepwater image, in fact the water d
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