West Africa-focused Tullow Oil (TLW.L) forecast annual production at the higher end of its forecast range on Wednesday and raised its free cash flow projection, encouraged by strong performance at its Ghana fields and better-than-expected oil price realisations.
The company has been reshaping its business around Ghana by selling assets in Gabon and Kenya and refinancing to trim debt. It also secured licence extensions for its flagship Jubilee and TEN fields until 2040, supporting further drilling and output.
Tullow lifted its annual free cash flow forecast to $170 million-$250 million from $70 million-$175 million, citing increasing production alongside higher oil price realisations and progress in recovering funds owed by Ghana's government.
It expects annual production at the top end of its 34,000-42,000 barrels of oil equivalent per day forecast range.
The company said it realised an average oil price of about $95 a barrel before hedging across six cargoes in the first half, or $86 a barrel after hedging, with hedging costs totalling roughly $47 million.
