Tullow Oil's “strong results” supported by rising oil prices

A 30% increase in average prices put a gloss on Tullow Oil’s (LON:TLW) interim results, with the Irish oil and gas company reporting today pre-tax profits of $89m (1H09: $31.3m) despite a 6% drop in production.
Tullow described its performance as strong, and said the results were in line with market expectations.
Overall average realised prices - for oil & gas combined - increased by 30%, while the Tullow’s realised price per barrel was 45% higher at US$77 (H109: US$53).

The company highlighted that whilst production has dropped in the period, it expects to achieve “first oil” in Ghana during the coming months and consequently it sees “significant production growth and increased cash flow” in 2011.

"Tullow has continued to make strong progress in the first half of 2010,” Tullow Chief Exec Aidan Heavey said.

“Our exploration and development programmes are delivering excellent results with significant new oil discoveries being made in both Ghana and Uganda and first oil from Jubilee expected before year-end ... We look forward with confidence to a promising second half of the year and strong performance overall in 2010."

The company upped its full-year production forecast to 57 - 58,000boepd (barrels of oil equivalent per day).