Tullow Oil raised average production for the first half by 11 per cent to 69,700 barrels of oil equivalent per day but reduced the guidance for the year to 72,000-75,000 boepd from 80,000 boepd due to delays in its UK drilling projects.
It is currently pumping 75,000 boepd, with volumes across its portfolio 'close to expectations' with the exception of the UK, the company said in a trading statement.
"Following drilling delays on the Ketch field and the decision by Tullow to terminate the Ensco 101 rig contract early due to a high rig rate, weaker gas pricing and reallocation of capital, the average 2007 UK production forecast has been reduced to 28,000 boepd," Tulllow said.
"This has resulted in a revised average group working interest production forecast for 2007 of 72,000-75,000 boepd," it added.
The group will be writing off £13 million sterling in exploration costs in the first half and has upgraded capital spending for the year to £400 million.
Realised oil prices for the first half remained strong, averaging about $61 a barrel (pre-hedges) and $57 a barrel (post-hedges). The group sold its oil at a 3 per cent discount to Brent, a level it expects to continue for the rest of the year.
Realised UK gas price was around 24 pence a therm (pre-hedges) and 36 pence a therm (post-hedges), Tullow said.
Turning to its drilling project in Ghana, the company said recent technical work on the Mahogany discovery indicated the resource estimates at the site could be bigger than current estimates.