Africa-focused Tullow Oil said on Wednesday it expected to make $200 million in free cashflow this year at an average oil price of $95 a barrel, adding that it sees no cashflow in the first half after an arbitration payment and an acquisition.
Tullow said a shareholder prospectus for its planned merger with Capricorn Energy will likely be published in the fourth quarter, with a vote on the deal around the end of the year.
In 2021, with lower oil prices, Tullow had a free cashflow of around $245 million, boosted by the sale of its Ugandan assets.
It is seeking an investor in its onshore oil project in Kenya, where a final investment decision is yet to be taken. Tullow said on Wednesday that it was confident it could make substantial progress in the second half of the year.
It expects to produce between 59,000-65,000 barrels of oil equivalent per day this year.
Tullow has hedged 42,500 barrels per day (bpd) this year at an average floor and call prices of $51 and $78 a barrel and 33,100 bpd in 2023 and 11,300 bpd in 2024 at $55 and $75 a barrel.
(Reuters - Reporting by Shadia Nasralla, Editing by Louise Heavens)
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