DAVY VIEW

The news that Tullow Oil has successfully completed its six-month reserve base lending (RBL) review should provide some comfort to shareholders. At the same time, capex deferrals/changes have cut a further $85m from committed expenditures, bringing its free cash breakeven price to $35 per barrel for the rest of the year. The background remains brutal for leveraged E&P stocks, but Tullow has found a breathing space and continues to undertake whatever self-help it can.