Tullow Oil shares plunge – Report

Shares of Tullow Oil plunged Thursday August 18, 2011, Irish publication, the Independent reports.

According to the publication Tullow’s shares dropped amidst reports that the oil and gas explorer may cut its production guidance following troubles at a number of its projects this year.

Tullow which is listed primarily in London is listed secondarily on the Ghana Stock Exchange (GSE). The company issued four million shares on the GSE in July and its shares on the GSE become the most capitalized equity on the bourse.

It is trading under the symbol TLW, and has listed 903.8 million shares with a market capitalisation of approximately GH¢28.18 billion.

The oil producer is expected to hit its output plateau at Ghana’s Jubilee oil field in December rather than August, as originally planned. Tullow has also faced drilling delays in Kenya, Ghana and French Guiana the report said.

Tullow, the report said is likely to reduce full-year extraction guidance to below 90,000 barrels a day, said Dragan Trajkov, an oil and gas analyst at Renaissance Capital in London.

In July, Kosmos Energy, Tullow’s partner in Jubilee, said it might delay drilling of an exploration well off Ghana to the fourth quarter after problems with the rig it was to use.

In May, Tullow and partners — including Royal Dutch Shell and Total — delayed the completion of an exploration well off French Guiana until August because of drilling disruptions, the report added.

By Emmanuel K. Dogbevi