Member Info for Romeike

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.

The reserves are independently verified by competent persons. They don't just make this stuff up.

Except that assumes Tullow would accept such a derisory valuation. I don't think that is going to happen.

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.

There were no water injection issues, but capacity was increased at the recent refit.

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.

It does read as if they've been given unlimited permission to flare as needed.

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.

Bonds are just following the equity price action

Sounds like a huge leap into the dark.

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.

Not to mention even more financial stimulus in China, Singapore, and quite possibly Japan.

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.

The problem is taxes and fees

(Kosmos is a junior partner at Jubilee, Ghana)
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The increase in 1P reserves (excluding the impact of the Greater Tortue Ahmeyim Phase 1 LNG SPA) is primarily driven by performance in Ghana, where additional drilling has increased oil in place estimates. Jubilee recent production performance has been impacted by facilities issues and gas handling constraints, and the reservoir performance remains strong.

The increase in 2P reserves was primarily driven by performance at Jubilee and an increase at Greater Tortue Ahmeyim following the GTA-1 appraisal well drilled in 2019. 2P reserves in Equatorial Guinea and the Gulf of Mexico were held relatively flat, with revisions replacing most of 2019 production.
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A deal with Total that swaps a stake in exploration assets for share of production is entirely possible and would be a strong positive for Tullow at this point. Given the long term relationship between the two firms, I could see something like that happening.

You think the new CEO won't do a clear out if he thinks it necessary? Most new CEO will bring in their own team regardless.