Tullow Oil Share Discussion Threads

[nicebut] 05/2/2016 23:30

Odey increased to 4.19% yesterday (4th)....or 38.19m shares short.

[hearts1] 05/2/2016 19:44

In fact if you divide US production by the number of rigs the average production per rig is circa 18,500 bopd.Yet US production according to EIA has remained constant for a few months.Even if only 10 of the 31 drop this week were producing, and at half the average rate that should give a drop of 90,000 bopd next week, if all other rigs remain constant.Yet recent drops in rigs has made no effect. Yes last year the US industry made significant improvement in rig production, but that gain has happened now and given the front ended production curve of the typical shale well even existing rigs in use should be seeing depletion.

[hearts1] 05/2/2016 18:23

US rig count down by 34, really can't see how the production figures can remain where they are for much longer.

[nicebut] 05/2/2016 15:38

Some serious buying going on here...Seems to have de-linked itself from the DOW too...any surges in ther DOW power it further up though. Interesting price action.

[spirito] 05/2/2016 14:29

Wouldn't want to be out at the weekend just in case something happens and if it drops Monday I'm holding long term anyway. Could easily miss a big rise if things go in favour of increased oil price.

[investordave] 05/2/2016 13:49

Price easing somewhat. Shorting scumbags back?

[mcsean2164] 05/2/2016 13:40

OK, that's me 13:13 still haven't got all I want but happier now.

Target around 340p over about the next year.

[betelgeuse1] 05/2/2016 13:22

lol@dirtychod

[ben chod] 05/2/2016 13:20

betelgeuse1
5 Feb'16 - 10:53 - 25058 of 25066 0 0

TLW was £16 so long way to curve upwards yet

will neverreach £16...maybe £116

[mcsean2164] 05/2/2016 13:13

Order in at 185p, let's see if it gets triggered...

[volsung] 05/2/2016 13:13

Liked SIA a lot until they got interested in drilling in the gorilla park. That's off the cards now thankfully

[barkjon230] 05/2/2016 12:48

Thanks EE, been in SIA before but not recently, I'll take a look at the board

[busterbrown2] 05/2/2016 12:31

Not sure if this has been posted already?

'Tullow gets boost in Maersk Oil Kenya deal'

hxxp://www.nation.co.ke/business/Tullow-gets-Sh43-6-billion-boost-in-Maersk-Oil-Kenya-deal-/-/996/3063586/-/x94oth/-/index.html

Africa Oil Corporation, the partner of Tullow Oil Plc in Kenya has received Sh43.6 billion ($427 million) from Maersk Oil & Gas of Denmark in exchange for half of its stake in three exploration blocks located in the Lokichar basin.

The deal brings in Maersk as a partner in blocks 10BB, 13T and 10BA where it will own 25 per cent interest, scaling down Africa Oil’s stake to 25 per cent while Tullow retains a 50 per cent interest in the blocks.

The farm-out arrangement was approved by Kenyan authorities last month but both companies had not reached a financial settlement.

Africa Oil says the funds will be utilised to further exploration activity in the country as it prepares to commence pumping crude.

Africa Oil will be eligible for an additional Sh7.7 billion ($75 million) from Maersk after it confirms the existing amount of crude in the three blocks, which is expected to take place this quarter.

Once Tullow and Africa Oil agree on when to start producing oil, Maersk will also be obligated to pay the Canadian company an additional Sh41.3 billion ($405 million) depending on “meeting certain thresholds of resource growth”.


START PRODUCTION SEPTEMBER

“We are very pleased to have completed the Kenyan portion of our farm out to Maersk. We feel Maersk will be an excellent partner in terms of technical and financial strength and experience critical to moving the development project forward,” said Africa Oil’s chief executive officer Keith Hill.

The government is targeting to start crude production in September but in a recent update on its operations, Tullow Oil said that it would make a consideration on whether to invest in oil production and setting up of associated infrastructure in 2017.

International oil prices have plummeted to about $30 a barrel due to oversupply and declining demand.

The steep drop in crude prices has also seen oil and gas companies endure funding challenges, resulting in farm out deals both as a way to raise additional capital and also offloading exploration risk.

Africa Oil is upbeat that the deal with Maersk will eliminate the need for funding from its shareholders.

“This transaction puts Africa Oil in the enviable position of not requiring any additional equity financing prior to first oil and will allow us to weather the current difficult oil price environment should it continue into 2016,” said Mr Hill.

[emptyend] 05/2/2016 11:46

jon, Most know that I'm a longstanding holder of SIA. Better balancesheet, cleaner bid candidate etc - but of course a much smaller business in terms of total assets than TLW. Either could be bid targets, depending what sort of companies are active on the buy side.

[barkjon230] 05/2/2016 11:26

EE what's your preference in the sector?

[emptyend] 05/2/2016 10:57

Anyone short here is pretty mad, IMO. TLW is clearly a viable bid candidate and, with £13bn cash arriving in the pockets of BG shareholders shortly, must have a decent chance of plugging any funding gaps from the market.It follows that IF there is anyone interested in buying (and I'm neutral on that point) then their window of opportunity to pick TLW up cheaply is closing quite quickly.Risk/reward must favour being long (though I've got no position in TLW, preferring another company instead).

[nicebut] 05/2/2016 10:54

This is nice...

[betelgeuse1] 05/2/2016 10:53

TLW was £16 so long way to curve upwards yet

[betelgeuse1] 05/2/2016 10:52

ENQ ready to do the biz

[betelgeuse1] 05/2/2016 10:51

VED on fire

[betelgeuse1] 05/2/2016 10:51

240p next week?

[holmess] 05/2/2016 10:50

Nice price action today. Hopefully catch up with my AAL positions soon - kerching :)

[hearts1] 05/2/2016 10:41

Takeover rumours.

[warwick69] 05/2/2016 10:40

Crude going down and TLW going up and quickly

[betelgeuse1] 05/2/2016 10:35

240p comuing