Shares in Tullow Oil (LSE: TLW) are around 8% higher today despite it releasing a mixed update for the first quarter of the year. Production during was slightly below expectations as a result of the need to implement new Jubilee off-take procedures at the end of March after damage to the Jubilee FPSO turret bearing. However, Tullow expects production to resume in the next few days once new Jubilee off-take procedures are implemented.

Elsewhere, Tullow’s TEN project is now over 90% completed and is on track to produce its first oil in July/August. This could be a game-changer for the business and could act as a very positive catalyst on its profitability and share price. And with capital expenditure being revised down to $1bn from $1.1bn, Tullow appears to be moving in the right direction with a sound strategy.

With Tullow trading on a price-to-earnings-growth (PEG) ratio of just 0.2, it seems to have a wide margin of safety. As such, and while production may be lower than previous guidance, it appears to be a worthwhile long-term purchase – especially for less risk-averse investors.

Upward rerating?

Also reporting today was KAZ Minerals (LSE: KAZ), with the diversified miner announcing that copper production had fallen in the first quarter of 2016 versus the final quarter of the previous year. Despite this, KAZ continues to ramp-up production and remains on track to meet full-year guidance. Furthermore, with production being higher than during the same period of last year, it seems to be making encouraging progress.

With KAZ expected to increase its pre-tax profit from £34m this year to £107m next year, investor sentiment could improve dramatically in the coming months as the market begins to factor-in the company’s improved financial performance. And with KAZ having a forward price-to-earnings (P/E) ratio of just 9.3, there seems to be a wide margin of safety on offer and plenty of scope for an upward rerating over the medium-to-long term.

Lucrative contract

Meanwhile, Wood Group (LSE: WG) today announced that it has been awarded a $500m five-year contract with BP-operated projects in Azerbaijan to deliver services such as engineering, procurement and construction management.  This is clearly positive news for the company and continues Wood Group’s 40-year history of working with BP.

With Wood Group’s shares trading on a P/E ratio of 13.8, they seem to offer good value for money given the company’s relatively resilient financial performance during a tough period for the oil and gas industry. And with Wood Group forecast to increase its bottom line by 4% next year, it seems to be performing well, even though many of its peers continue to struggle with an industry that’s cutting back heavily on investment and expenditure.

Therefore, while Wood Group is at risk of share price falls if the oil price declines and investor sentiment weakens, for long-term investors it seems to be a sound buy.

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Peter Stephens owns shares of BP and KAZ Minerals. The Motley Fool UK has recommended BP and Tullow Oil. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.