Slight delays to Tullow's Zaedyus well

12th May 2011 19:39

Oil firm Tullow Oil said it has suffered delays to its drilling of the Zaedyus well, the first of several Jubilee-type prospects identified on 3D seismic data, off the coast of French Guiana.The company now expects results of the drilling will be available in early August.In its interim management statement the company said that the Jubilee field production ramp-up in Ghana is on track and that its exploration and appraisal programmes there continue to deliver excellent results. Significant progress has been made in Uganda with the signing of agreements with fellow oil companies CNOOC and Total, plus the government of Uganda, allowing the new partnership to restart exploration and to accelerate the development of the basin.The company said capital expenditure in 2011 is expected to be in the region of $1.5bn.At the end of April, net debt, before the receipt of the Uganda farm down proceeds, stood at about $2.1bn. "Jubilee production revenues, together with the Uganda farm down proceeds, mean that the group will have a very healthy balance sheet to fund significant exploration and development programmes and deliver future growth," the group said.Broker RBS Hoare Govett described the statement as an "in line update" with no major surprises. "We had anticipated near-term sentiment to focus on the results of the Zaedyus well, although with those delayed until early August, the attention is likely to revert back to ongoing Ghana and Uganda E&A programmes, where we are hopeful of positive results given the impressive drilling track record of Tullow," the broker said.