Tullow prospects hot up

SHARES in exploration stock Tullow Oil are a buy with close to 30% potential upside, stockbrokers Dolmen Butler Briscoe told clients yesterday.

Analyst Stuart Draper said further good news for investors is that the company may pay a dividend at the end of next year.

“With approximately 75% of Tullow’s current output being British gas, the price of which recently started to rise again going into mid-winter, strong H2 2002 earnings are likely. In 2003, cash earnings of circa stg£100m are expected, which, even allowing for total capital expenditure on exploration and development in 2003 of circa £25m, still leaves £75m in free cashflow, or circa 20p per share for shareholders.