Tullow’s Uganda output on course

OIL production levels from Tullow Oil’s Ghana-based Jubilee Field — which started producing late last year — have increased to over 70,000 barrels of oil per day (bopd) and are on course to reach the forecast 120,000 bopd level by July.

The Irish-founded oil and gas exploration and production company also said total capital expenditure for this year is likely to be in the region of $1.5 billion (€1.1bn). The company’s net debt, as of the end of last month, stood at around $2.1bn.

“In Ghana, the Jubilee Field production ramp-up is on track,” the company said.

“Significant progress has been made in Uganda, with the signing of agreements with the government, CNOOC and Total, allowing the new partnership to accelerate the development of the basin within weeks.”

The second half of the year will now see Tullow begin drilling at its assets in South America (it is active in French Guiana and Guyana) which feature “several Jubilee-type prospects”.

Talking up the remainder of 2011, major development decisions are to be made for Enyenra/Tweneboa and Jubilee and a number of significant wells with basin-opening potential in West Africa and South America are to be drilled.”

Meanwhile, fellow Irish exploration company, Petroceltic has reported a further upbeat drilling result at its Isarene field in southern Algeria. The company recently reached agreement to sell an 18.4% stake in the Isarene project to Italian utility giant, Enel, for a maximum of $183m.

Yesterday, Petroceltic announced its intention to raise approximately £37 million through an issue of new ordinary shares of €0.0125c each by way of a placing to advance the company’s enlarged drilling and appraisal programmes in Algeria, to advance drilling plans for the Rovasenda prospect in Italy.