Tullow Oil narrowed its annual production forecast range and cut capital investment expenditure estimate on Wednesday, as the West Africa-focused oil producer attempts to bring down costs after two strategic wells returned disappointing results.
The company now expects its full-year production to be between 61,000 and 62,000 barrels of oil equivalent per day. Its forecast for 2022 capital investment was reduced to about $360 million, while free cash flow forecast was raised to $250 million.
Tullow, whose plans to merge with Capricorn Energy were foiled in September when Israel's NewMed swooped in, said a number of "strategic and operational initiatives" were going on, and they were expected to evolve in the coming months.
The company decided to push back its capital markets update to 2023 until it has an update on its strategy and outlook for investors, it said.
(Reuters - Reporting by Yadarisa Shabong in Bengaluru; Editing by Sherry Jacob-Phillips and Subhranshu Sahu)