Africa-focused Tullow Oil said it expects its free cash flow this year to reach $50 million to $75 million at an oil price of $50 a barrel, and to break even at prices of $45 a barrel.
Tullow said it would slash its investment budget by about a third to $350m this year and cut its spending on exploration, historically the focus of the group, by almost half to $75m.
Shares in Tullow have nosedived around 92% in the past six months on the back of weak output in Ghana, delays in East Africa, lower-than-hoped-for oil quality in Guyana and a dry well in Peru.
It said today it aims to cut its general and administrative budget by around $200m over the next three years.
Tullow is cutting around a third of its workforce, seeking to sell stakes in some of its assets and hunting for a new chief executive.
Its shares, like those of other exploration and production-focused companies such as Premier Oil have come under further pressure since Monday's oil price slump, the worst since 1991.
