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Thursday, January 19, 2012

Tullow Oil stock outlook january 19 2012

Tullow Oil stock outlook january 19 2012 : Tullow Oil (LON:TLW) ,released a trading update yesterday for the year to December.. Sales in 2011 are estimated to have doubled to about US$2.3bn from US$1.1bn in 2010. However, the problems at Tullow's Jubilee field in Ghana continued, with gross average production at 66,000 barrels per day (bpd), well under the targeted 'field plateau rate' of 120,000 bpd.

This pulled down the average for the entire group to 78,200 bpd; guidance had been for production of between 79,000 bpd to 81,000 bpd. For 2012, management estimates production at Jubilee will average between 70,000 to 90,000 bpd. The company also announced a partnership with Shell to explore oil in the Atlantic basin.

Our view: The company continues to be plagued by production issues at the Jubilee oil fields and disappointing output across assets. A widening of the production guidance range for 2012 indicates lower visibility of a ramp-up at Jubilee. We maintain a SELL recommendation for the stock. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today

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