Tullow set to reward Dobell & Co with record revenues

Tullow Oil is on course to reward the likes of M&G Investments’ star fund manager Tom Dobell (pictured) with record revenues thanks to a major oil find in Kenya.

The Anglo-Irish oil firm said it expected revenue to come in at around $1.15 billion for the first six months of the year.

Along with the Kenya find, which will see the firm open the Ngamia-1 basin, Tullow commenced a significant exploration and appraisal (E&A) programme in Uganda, activating four rigs.

Overall Tullow is conducting a ‘high-impact’ programme of around 40 wells over the next 12 months, which includes drilling in Guyana, French Guiana, Kenya, Ethiopia, Ghana, Côte d’Ivoire, Liberia and Mauritania.

The firm also completed the farm-down of 66.6% of its Ugandan licenses to CNOOC for $2.9 billion, a move which it said had ‘transformed’ its balance sheet.

Dobell has been one of the most loyal followers of Tullow Oil over the years, initially buying into the firm in 2000 when shares were priced at 79p after he assumed control of the M&G Recovery fund .

According to documents seen by Wealth Manager, the fund held a 2.5% stake in the firm as 28 May.

Overall M&G Investments held a 6.36% position in Tullow, with Graham French controlling a 2.46% interest through his M&G Global Basics fund

BlackRock were also big backers of the stock with a 10.10% interest at the end of May with the BlackRock UK Income and UK Dynamic funds among the stakeholders.

Commenting on today's update, Tullow chief Aidan Heavey told the market: 'Tullow’s industry-leading exploration success has continued in the first half of 2012 with a major discovery in Kenya, the fourth new basin the Group has opened in five years. We have also completed the $2.9 billion farm-down in Uganda, and made good progress on our development projects in Ghana and Uganda.

'The on-going remediation of the Jubilee field is progressing well and significant exploration wells are planned for the East African Rift basins, the West African Transform Margin and the twin basins in South America in the second half of 2012. With an exciting programme ahead, Tullow is well placed for continued success over the remainder of the year.'