Tullow Oil said today it retains $500m liquidity headroom as of the start of the final quarter of its fiscal year.
This follows the redetermination of its credit facility that has $1.8 billion of debt capacity.
The oil producer has been looking at ways to avoid a cash crunch after a $1.3 billion first-half loss due to the coronavirus-led crash in oil prices.
It also said it would hold its capital markets day on November 25.
In a note, Davy stockbrokers said that the passing of Tullow's second debt redetermination this year is "encouraging".
"It removes an element of uncertainty and allows Tullow to continue to focus on adapting to the current low oil price environment," the stockbrokers said.
The end of 2019 and 2020 so far has been a difficult time for Tullow with reserve and resource write-downs due to extremely depressed oil and gas prices.
Senior management also changed during this period, and a major group review was put in place with widespread cost reductions.
"The culmination of this review and how new management sees Tullow evolving and realising value from its asset base is due to be laid out at the Capital Markets Day," Davy said.
The stockbrokers said this will also include the optimal route to reducing the debt profile, which stood at just over $3 billion by the middle of 2020.
"Not surprisingly, we think this CMD is more important and relevant than most such events," Davy added.
