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That's what I really don't get, Tullow was it a far worse positon a few years ago and its share price held at reasonable levels. What has happened since December is inexplicably extreme. The share performance is worse than if they'd arrested all the board for financial crime and announced that the accounts were totally made up.
Oil prices are not going to spend all year at these lows. Much of production is hedged. January prices were also relatively high. If anything these low prices could very well kill off US shale growth sooner than expected leading to higher prices later in the year.
We can only hope that an announcement on CEO is made before the end of March. Even then it does not mean they will start immediately, though they will heavily influence strategy even before they officially start. I am very much hoping the new CEO can start immediately though, really need a change of approach from the communications lock down of recent weeks.
While respiratory virus are generally transmitted through air, it looks like this covid-19 relies quiet heavily on the fecal-oral route. Sounds pretty disgusting, but perhaps if people are more conscious about hygiene it will limit the chance of pandemic. Despite all the scaremongering I still think likely this will be contained, but I suspect it will end up endemic in China and the Middle East. Interesting they count cases brought back to a home country as an infection in that country - great for causing fear of "the spread" but not very informative.
If in line with forecast it will be running at 23,000 bopd. I distinctly remember that the higher capex 2019 was meant to be for plans to drill and complete seven new wells across the TEN and Jubilee fields. I have no idea what happened to that.
We have started the year well, with production in line with expectations and a number of improvements made in Ghana.
So does this mean production is in line with their lousy forecast or ahead of their forecast given the improvements made in Ghana? The wording is obscure.
Does anyone know if I am correct in thinking that of the two well issues in TEN, the first E-10 was resolved last year, but the second was abandoned, to be replaced with a different well this year? The missing 6k bpd production is the result of the issues with those two wells.
I believe the issue with Enyenra is a function of it's geology, you can take a look at the shape of the reservoir in the original project documentation.
https://www.tullowoil.com/Media/docs/default-source/3_investors/tullow-ten-brochure.pdf?sfvrsn=2
Something really stinks about those forecasts. Why have they deliberately shot themselves (or shareholders) in the face with these "lower forever" claims? If they really wanted to get rid of the top two executives, surely they could have found a way without destroying 90% of shareholder value in the process?
Jubilee is (the larger half) of the story, we also need to see improvement at TEN. That ought to be provided by the new well. All of this is being drowned out because the governments of countries like Iran, S Korea and Italy cannot get their act together.
With the SP action completely detached from reality now, who knows though the bounce back from 36p was pretty strong. Dorothy and team need to get a new CEO appointed asap. Taking action against the form just weeks before the Christmas the way they did has left this company exposed and directionless for far too long.