Exploration group Tullow Oil has reported record trading in the first six months of this year, boosted by strong production and high oil and gas prices.

In a half-yearly trading update, Tullow said yesterday that production was 8 per cent ahead of the same period last year at 63,200 barrels of oil equivalent per day.

This figure is expected to increase to more than 75,000 by the end of the year.

"Tullow's business is performing strongly and our major appraisal and development programmes, in each core area, are progressing to plan," said Aidan Heavy, the group's chief executive. "The outlook for the remainder of 2006 is very promising."

In the first half of the year Tullow spent £151 million drilling 18 development wells and 11 exploration wells, of which six discovered hydrocarbons.

Over the course of 2006, the company plans to spend as much as £320 million on exploration and drilling activities, about three-quarters will be spent on ongoing development and production activities in the UK, Gabon, Congo, the Ivory Coast, Equatorial Guinea, Pakistan and Bangladesh.

Along with its rival producers, Tullow has benefited as oil and gas prices have soared amid concerns over supply and security.

During the first half of this year, the average oil price secured by Tullow was $55 (€43) a barrel, compared with $43 in the year-earlier period.

Tom Hickey, Tullow's finance director, said he doesn't expect to see any let up in the oil price in the near future with the price remaining above $60 a barrel.

Analysts welcomed yesterday's announcement, describing the numbers as further evidence of Tullow's ability to deliver on expectations.

"The exploration story is robust too with drill-bit success in Uganda and the North Sea during the first half of the year," Job Langbroek, an analyst at Davy said in a note.

Despite the positive news, Tullow shares slipped five cent, to €5.58.