Tullow Oil suspends its 2014 final dividend

DividendMax Ltd.

Tullow Oil suspends its 2014 final dividend

2014 FULL YEAR RESULTS HIGHLIGHTS

Revenues down 16% on prior year impacted by oil price decline in 2H 2014 and gas asset sales in Europe and Asia; Significant write-offs, impairment charges and a loss relating to the Uganda farm-down result in a loss after tax of $1.64 billion.

Debt facilities increased through the issue of a second tranche of Senior Notes of $650 million and refinancing of the Revolving Corporate Facility to $750 million; hedging programme with a mark-to-market value of around $500 million provides substantial revenue protection; Year-end 2014 net debt of $3.1 billion and facility headroom and free cash of $2.4 billion.

Review of cost base and efficiencies expected to deliver cash savings of around $500 million over the next three years which will be realised through reductions in capital expenditure, operating costs and administrative expenses.

West Africa working interest oil production averaged 63,400 bopd in 2014; Production guidance in 2015 for the region is 63-68,000 bopd; Jubilee field gross production averaged 102,000 bopd in 2014, forecast to average 100,000 bopd in 2015.

TEN Project in Ghana 50% complete; on budget and on track for first oil in mid-2016; ramp up towards FPSO facility capacity of 80,000 bopd gross around the end of 2016.

2015 capital expenditure forecast to be $1.9 billion with further reductions targeted; this includes a materially reduced exploration and appraisal budget of $0.2 billion which includes basin-opening wells in Kenya, Norway and Suriname.

Dividend suspended; No final dividend payment for 2014 resulting in full year 2014 dividend of four pence per share.

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