Tullow Oil has forecast annual production to come in at the higher end of its outlook range, after a strong start to 2026 at the West Africa‑focused independent oil and gas producer due to improved operations and an active drilling programme.
The company said group working interest production averaged 43.4 thousand barrels of oil equivalent per day (kboepd) in the first quarter of 2026, supporting expectations of delivering the upper end of its 34 to 42 kboepd range for the full year, including about 6 kboepd of gas.
The heavily indebted producer has undertaken a capital overhaul, selling non-core assets in Gabon and Kenya and cutting costs to refocus operations on its core producing assets in Ghana, while completing a refinancing aimed at extending its debt maturities and improving liquidity.
Shares in the London-listed company rose as much as 9.6% to 12.7 pence this morning.
Tullow said the strong early‑year performance was driven by a successful start to the Jubilee drilling campaign in Ghana, with three wells producing in line with expectations since they were brought on stream since mid‑2025.
CFO Richard Miller told analysts on a call that Tullow's realised oil prices had also risen materially, with its first four cargoes of 2026 averaging about $90 a barrel, compared with an average realised price of $66 in 2025.
The company has now widened its oil price assumptions for 2026 to $70 to $100 per barrel, reflecting higher prices and volatility spurred by the Iran War, and Tullow expects free cash flow of $70-175m this year at those levels. Oil prices hit $110 a barrel today.
Tullow's net debt improved to $1.35 billion at the end of 2025 from $1.45 billion a year earlier.
But the company, however, posted an 87% slump in profit after tax to $7m for 2025 compared with $55m reported a year earlier. This was partly due to lower production following asset sales and delayed payments from the Ghanaian government, which continued to weigh on cash flow.
