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They need to reduce their stake in projects. Does Tullow really need 30%+ stakes in projects such that it can't even afford to develop? Too much of McDade trying to play the big major instead of sticking to the model that made Tullow successful.
There is no range, this has consistently been pushed down to lower low after low each week. The price has nothing to do with valuations or fundamentals at this point it is pure sentiment and speculation. A new CEO is often the catalyst that kicks off recovery and renewed trust and the market has a short memory for issues when the share price is headed in the right direction. The new CEO will need to turn any tentative recovery into long term performance improvement.
You could very easily ask why were agreeing to one-sided (from expenses perspective) drilling campaigns with junior explorers and paying dividends when their focus should have been fully on doing a good job in Ghana, progressing Kenya, Uganda or preferably both and paying down debts. Such is ongoing legacy of bad decisions made by McDade and Co. I just hope the new CEO can turn things around faster than it took them to screw thing up. Higher oil prices will fix a lot of the issues.
This isn't down to Dorothy. The Peru drill is just another wasteful, careless decision by failed CEO McDade. Hopefully Tullow will stop relying on AIM listed wildcat partners and get back to a more cautious approach. Why McDade chose to risk so much shareholders cash on risky escapades when there are readily producible assets available for acquisition at bombed out prices I don't know. Hopefully the legacy of bad decisions will abate this year and Tullow can look forward to a better future under more competent leadership.
The gas flaring is to maintain safety in the two oil fields and pressure build of gas in the wells. This allows the fields to remain operational as before and I presume the annual target stays the same. <- No, this is one of a number of measures which should normalise production over time at the wells.
The impact may not be so obvious in the next trading update but longer term the news about gas flaring permission on top of measures already taken to improve gas uptake and handling will certainly be significant in improving performance at the fields. It's probably the most important news we've had since December and yet the share price didn't move. Interesting that Tullow yet again chose not the put out anything official, though I am sure they'd prefer Ghana actually started taking all the gas.
The gas issue was specifically cited by operations staff as the primary reason for production issues. The other main issue being the bad well at Intombe. Although not an immediate resolution this does increase the likelyhood of hitting the top end of targets for thus year and hopefully improving next years forecast.
Alongside the increased gas handling measures and 50% capacity usage of the karpower ship all this should help improve productivity over time as the gas ratio of the resevoir normalises. Great news to end the week.
I wish him well but I cannot understand the decision myself, when Tullow was really in the do-do in 2014 look where the share price was. The current price is sentiment driven and stands a very strong chance of a real recovery. I don't even know what NMC is but I know it's AIM and that alone is enough to make me stay away.
The Permian producers and local gas processing plants are simply burning off over 800 million cubic feet of gas daily, enough to power 5 millions homes. Disgusting. Don't they have any environmental controls at all? Meanwhile Tullow is re-injecting most of its gas back into its reservoir to abide by pollution rules in Ghana.
True, much of the damage done by previous breakouts was caught up in the next quarter. Anticipating that oil will quickly assume the $60 level until US production growth levels fall off leading to further gains in q3/q4.