The London-based oil exploration group, which focuses on Africa, doubled its estimate of its discovery in Kenya's South Lokichar basin, currently around 600 million barrels, following two successful well results. During the coming two years the company says it plans further exploration, predicting that the region could yield more than a billion barrels. "Exploration results to date from the first basin, among a chain of basins, have proven that Tullow's onshore acreage in northern Kenya has the potential to become a significant new hydrocarbon province," said Exploration Director Angus McCoss. “The programme of over 20 wells we have planned across our licences over the next 24 months should materially add to the 600 million barrels of oil discovered to date.” In the opinion of Tullow CEO Aidan Heavey Kenya could potentially rival or exceed the Ugandan oilfields.
The South Lokichar basin is just one of eight in which Tullow has an interest. The company also said that full-year revenue for 2013 is expected to be $2.60 billion, up from $2.34 billion in 2012, while gross profit is expected to rise to $1.40 billion from $1.35 billion. It expects to post production of 84,200 barrels of oil equivalent a day, up from 79,200 in 2012. Tullow said 2014 production will be between 79,000 and 85,000 barrels, and forecast that capital expenditure will rise to $2.2 billion from the 2013 level of $1.8 billion.
