Prospects of a resumption of dividend payments by Tullow Oil have increased with the Irish-founded exploration company forecasting free cash flow, for this year, at a better-than-expected rate of approximately $700m (€618m).

Tullow Oil is set to take a substantial earnings hit this year after seeing its final bill to cover a terminated rig contract in Ghana increase by nearly $51m (€44m) to over $190m.

Tullow Oil is considering appealing a court judgment ruling it should pay a minimum of $140m (€120m) to cover costs arising from an early termination of a drilling equipment contract in 2016.

Tullow Oil is likely to pay shareholders a “modest” dividend based on its 2018 performance, a leading resources analyst has claimed.

Tullow Oil is set to reach the end of an era in July when founder and former chief executive Aidan Heavey formally leaves the company after more than 30 years.

Tullow Oil is to consider a resumption of shareholder dividend payments, which it last made in the middle of 2014, depending on cash flow generation in the next couple of years, writes Geoff Percival.

Dublin-based explorer United Oil and Gas is actively looking at further deal opportunities after expanding its asset base via the purchase of a 20% stake in a Tullow Oil licence offshore Jamaica.

Tullow Oil is to turn its focus towards South America later this year, aiming to start drilling offshore Suriname by October at an area close to where super-major ExxonMobil this week made a significant discovery off the coast of Guyana.

Tullow Oil shareholders have unanimously voted in favour of the company’s planned board changes and executive pay policy despite some criticism in the lead up to its AGM yesterday.

Shares plunged in Tullow Oil following the surprise announcement it was issuing a £607m (€695m) sales share at a vastly discounted price.

Tullow Oil boss Aidan Heavey has said the company should return to profit this year after reaching the end of a four-year cycle of cost write-offs.

Shares in Tullow Oil fell up to 3% yesterday after the Irish-founded exploration company announced its founder and chief executive Aidan Heavey is to step down and that its 2016 revenues are likely to have fallen by almost 19%.

Output from Ugandan crude deposits being developed by companies including Tullow Oil and Total is unlikely to be exported as soon as the nation expects because of the scale of the infrastructure projects required to move the fuel out of the country.

Tullow Oil shares tumbled by nearly 12% yesterday on the back of the Irish-founded exploration firm announcing plans to launch a five-year convertible bond aimed at raising $300m (€270m) to help fund the further development of its assets in western and eastern Africa.

Shares in Tullow Oil nosedived by over 11% yesterday after the Irish-founded exploration firm was downgraded by two high profile brokers.

Africa-focused oil producer Tullow Oil said yesterday that it would have to lower its production outlook due to a technical fault that has forced a longer-than-planned shut-down at its Jubilee oil field off Ghana. The shares rose, however, as crude oil prices advanced.

Shares in Tullow Oil were up by more than 12% in London for much of yesterday’s trading session, hitting a two- month high in the process, as the Irish-founded explorer issued an upbeat trading update and said it is financially protected against the continually weakening oil price environment.

Tullow Oil has stated that its much-anticipated $5bn flagship Tweneboa Enyenra Ntomme (TEN) project, off the coast of Ghana, is now 75% complete and remains on schedule and on budget to deliver first oil by the middle of next year.

Tullow Oil has reiterated its full-year production guidance of 72,000-78,000 barrels of oil equivalent per day after confirming that its flagship project has returned to full output levels.

Tullow Oil’s first half revenues are likely to tumble by nearly 40%, year-on-year. However, the Irish-founded explorer is also anticipating a significant rise in production levels for 2015.

T5 Oil and Gas, the exploration investment firm headed by former Tullow Oil executives, has designs on becoming a publicly listed “multibillion-dollar” company and is targeting completion of its first reverse takeover deal before the end of this year.

Tullow Oil has refinanced its Norwegian exploration prospect with a further $330m (€244m) in funding for its NOK 2 billion (€246m) prospect and it has extended a $500m facility out to 2017 for the NOK 3 billion prospect.

Shares in Tullow Oil slipped marginally yesterday on the back of a disappointing update from its operations in Ethiopia.

Tullow Oil has said there is a good chance it may complete the planned farm-out of part of its stake in the highly-rated Ten oil project in Africa this year, although it reiterated that it is in “no rush” to do so.