PRODUCTION at Tullow Oil, the Africa-focused explorer, has fallen short of City forecasts following problems in the North Sea.
The group also said its full-year results, due to be published next month, would include $670 million (£416.1m) in write-offs, including a $219m charge in the second half, which it blamed on an unsuccessful well in Ghana and the cost of relinquishing licences.
Output from the firm’s working interests averaged 79,200 barrels of oil equivalent a day, falling short of the forecast range of 80,000 to 84,000, which it blamed in the enforced shutdown of production in the Caister-Murdoch System area of the southern North Sea following a “safety incident” last month.
Tullow chief executive Aidan Heavey said: “The matter has been resolved and production resumed to normal levels at the end of December 2012.”
He added that the firm had enjoyed “significant” exploration success in Kenya, and production from the Jubilee field off the coast of Ghana was running at about 110,000 barrels a day.
Investec analyst Brian Gallagher, who has a “sell” recommendation on the group’s shares, described the production figures in yesterday’s trading update as “disappointing”.
He added: “While still a best-in-class explorer, we see ongoing challenges for Tullow as it continues to seek the right balance between the exploration and production sides of its portfolio.”
Shares in Tullow ended the day down 39p, or 3.2 per cent, at 1,186p.