Tullow hails 'transformational' year

Tullow Oil today said pre-tax profits for 2010 were $152m (€109m), up 361% on the $33m (€23.8m) posted in 2009.

The oil and gas exploration company today said revenues for the 12 months to end December were $1.09bn (€786m), a 19% increase on the previous year.

The postive results, broadly in line with analyst expectations, were helped by higher commodity prices as well as the production of first oil from Tullow's Jubilee field off Ghana.

Tullow said it produced the equivalent of 58,000 barrels of oil per day in 2010, selling at an average price of $78 per barrel (€56.25), up 30% from 2009.

“With First Oil in Ghana and an excellent exploration and appraisal success rate, 2010 was undoubtedly a transformational year for Tullow," Chief Executive Aiden Heavey said.

Mr Heavey added that while progress on its agreed farm-down in Uganda had been "slower", good advances had recently been made towards gaining government approval and establishing a strong fiscal and legal framework for the successful development of the basin.

"2011 has started very well with production increasing from Jubilee and continued exploration and appraisal success," Mr Heavey added.

"With a diverse 40-well E&A campaign planned for 2011, we look forward to another year of significant progress.”

The company said it would pay a final dividend of 4p per share.