Tullow Oil plc half year net profit up 63pc

Early this month, Kenya’s chances of discovering substantial amounts of commercially viable oil deposits increased with the discovery of an extra 43 metres of oil at Ngamia-1 well in Turkana County.

Tullow Oil plc has reported a 63 per cent increase in earnings for the six months to June 30 posting $567 million comparable to $347 million earned during a similar period last year.

The independent oil and gas exploration and production Group attributed the strong performance to "increased production, sustained high commodity prices and profits from the Ugandan farm down."

The firm said it would, however, have posted better results were it not for increased exploration write-offs and increased costs.

“Our exploration-led growth strategy continues to yield an exceptional success ratio and Tullow has, with the discovery of oil onshore Kenya, opened up a fourth new basin within five years,” said Aidan Heavey, the Chief Executive for Tullow.

“Our balance sheet has been transformed by the Uganda farm-down and our financial strength will continue to improve through growing production and a strong pipeline of activity in the second half of 2012 promises another excellent year for the Group.”

Early this month, Kenya’s chances of discovering substantial amounts of commercially viable oil deposits increased with the discovery of an extra 43 metres of oil at Ngamia-1 well in Turkana County.

Tullow Oil and Africa Oil Corporation announced that the latest discovery had brought the total find to 143 metres.
An initial depth of 100 meters of oil was discovered in March.