Tullow Oil Share Discussion Threads

[mariopeter] 10/1/2017 12:14

Jovi,

The production wells will be generating free cash flow of $1.6 billion at $56 oil. They do not need more equity fundraising but equally they don't need to spend more billions in East Africa at the moment.

Kenya percentage ownership can only be preserved by a higher oil price or a delay to investment decision. imho.

[jovi1] 10/1/2017 11:08

Cricklewook

My target still to sell after March 2021 but I have to admit I did take little more than a profit and now free carry on Tlw Iae Sou
Amer and Ophir did not perform as well but maybe before 2021 they will
If Tlw sell some asset for a more significant cash amount I suspect they will have an open offer too to significantly reduce debit
Good luck

[mariopeter] 10/1/2017 10:27

OnJohn

I read that as costs of $400m against $900 of sale proceeds ie profit of $500m ....

[oilretire] 10/1/2017 07:45

Total's take. As jovi1 alluded to this deal needed to happen for the project to move forward - and it can now at Total's pace.



“Following the agreement on the Tanzanian export pipeline route, this transaction gives Total a leadership position to move this project efficiently toward FID in the current attractive cost environment, while providing strong alignment and a pragmatic financing scheme for our partner Tullow,” said Patrick Pouyanné, Total Chairman and CEO.

Tullow can now essentially forget about Uganda until 10% of production revenues start to flow......

& no doubt have a reduced opex and staff reductions in the Uganda business unit going forward.

Total, which is already operator of licenses EA1 and EA1A, will in addition take over operatorship from Tullow of license EA2, enabling significant efficiency gains and synergies.

[larva] 10/1/2017 07:23

Jeffries


Tullow Oil (TLW LN): Uganda Farm-down - Realistic Expectations
Rating UNDERPERFORM



Price Target 250.00p

[cricklewood] 10/1/2017 02:40

Well well, i need 440p just to break even.

[jovi1] 09/1/2017 23:16

Cricklewood I hope you still in this and I suspect you will be blue by now

[jovi1] 09/1/2017 23:12

On John

that will be the first impression but investor know that without this type of deal the oil would stay in the ground much longer.
with this move TLw made the company much more stable as will have 10% without any cost from now on.
tlw will get the 200 mill and the equivalent of a free carry to oil and that is positive if you don't have the cash to develop the field. it is equally good for a partner with expertise to fund the project from spare cash flow.
clearly oil is not doing well today but if oil pick up overnight tlw will continue to move up at double digit pace unless shorter will keep selling in that case we will have to wait a bit longer to see the true value of the deal.
food luck

[onjohn] 09/1/2017 22:23

Fire sale at the bottom of the market by Tullow

write off €400 million of its investment in project in 2016 results

[samsung7] 09/1/2017 21:02

The Ministry of Energy now expects the first export of crude oil to be done in April, two months ahead of the intended June target.

According to ministry officials, 70,000 barrels of crude oil have already been stock piled, with the government now working on establishing potential export markets.

The government plans to use the early oil project to gauge the viability of local oil, as well as build networks ahead of full scale commercialization in 2020.

Ministry of Energy and Petroleum Cabinet Secretary Charles Keter said Tullow Oil has already expressed confidence in the Kenyan oil fields, giving the government confidence.

“Tullow and its partners have started drilling again and we have been informed that they have got good results,” Mr Keter said.

Kenya will initially export 2,000 barrels of oil on a daily basis as part of plans to test the global oil markets.

Already the government has sent samples to refineries in the middle east and Asia ahead of the trial run.

The country’s oil is classified as light and sweet, meaning it has less sulfur which generally fetches good prices as it is easy to refine.

The crude is however waxy and will need to be constantly heated during transportation and storage.

Oil will be trucked all the way from oil fields in Turkana to the Kenya Petroleum Refinery Limited (KPRL) storage facility in Mombasa from where it will be exported.

With prospects of increased oil reserves, Mr Keter is confident financing for a crude oil pipeline will be more feasible.

“From the 750,000 barrels we will get to a million. With a million now we are game in terms of the pipeline construction and that’s why the early oil project is important,” he said.

Kenya was forced back to the drawing board last year after Uganda pulled out of a joint pipeline deal in favor of exporting its oil through Tanzania.

[mariopeter] 09/1/2017 19:41

yeh sell the shorts more like

[eipgam] 09/1/2017 18:40

Yes... I hope they have clarified the tax position on this occasion.

[oilretire] 09/1/2017 18:06

Time the deal was signed? News too significant to sit on till tomorrow morning. Wonder if the muted reaction is down to our last major farm downs in Uganda that led to tax arguments.....

[frontdoor bull] 09/1/2017 17:30

Whats with the timing 15.00hrs ?

[nicebut] 09/1/2017 17:22

Agree WRT debt reduction...

[mariopeter] 09/1/2017 17:16

Great.

If Total farm in to Kenya as well (probably awaiting the result of the 4 well drill program soon to be started if not started already )then the share price will seriously go up.

Market saw only $100m coming in (near term) on completion of the Ugandan deal and the reaction was therefore staid.

I actually feel there is much more to this rns and it reflects the desire by Tullow management to lose the huge Eastern Africa cash commitment and seriously reduce debt levels from the West.

[nicebut] 09/1/2017 17:12

Who knows...

According to FCA update today he increased on the 5th...by .13%

[stopps] 09/1/2017 17:10

Did he increase short position after todays news?

[yasharsad] 09/1/2017 16:55

Shorters are definitely closing. Odey however has increased its position to 3.84 on 05/01. According to fca. https://www.fca.org.uk/publication/data/short-positions-daily-update.xls

[phillis] 09/1/2017 16:54

welcome welcome
:-)

[eipgam] 09/1/2017 16:40

and a trading statement due on Wed