Tullow Oil said today it was set to book $1.4-1.7 billion in impairments before tax in its half-year results, due on September 9, as it follows larger rivals in lowering its oil price forecasts.
Tullow had a market capitalisation of $508m as of yesterday and net debt of $3 billion as of June.
It said in today's trading statement that its 2020 cash flow was forecast to break even at current prices.
It has hedged 60% of its sales this year at a floor price of $57 a barrel and 44% of next year's at a floor of $51 a barrel.
Rahul Dhir became the company's chief executive on July 1.
"Despite the challenging external environment in the first half of the year, Tullow has performed well - delivering production in line with forecast, agreeing the sale of the Ugandan assets and re-shaping the group's structure and cost base," the CEO said.
"In the second half of 2020 our focus will remain on continuing to deliver safe and reliable production from West Africa, reducing debt and building a cost effective and efficient organisation that can compete in a low oil price environment," he added