Tullow Oil Share Discussion Threads

[ny boy] 16/3/2017 08:22

Nicebut..good timing with that 30k purchase the other day!

Bought in @ 250p recently, holding long term for recovery and possible takeover

[oilretire] 15/3/2017 14:51

From wells to watch in 2017....


Guyana Suriname basin: Industry hotspot
The Guyana Suriname basin has been an exploration hotspot since ExxonMobil’s discovery of the
giant Liza field in the Stabroek Block offshore Guyana in 2015. With three wells drilled on the
structure, the company estimates that the field holds over 1bnboe. The Upper Cretaceous reservoir
is described as being very high quality with good porosity and permeability, and good deliverability
on test. Appraisal well Liza-3 has also encountered hydrocarbons in a deeper previously untested
reservoir that is estimated to hold 100-150mmboe. The well also found the oil water contact in
these deeper sands, which will increase the accuracy of resource evaluations. The company’s most
recent exploration well in the region, Payara-1, approximately 16km north-west of Liza,
encountered similar high-quality, oil-bearing reservoir in January 2017. Wood Mackenzie has
estimated that Payara contains between 300mmboe and 500mmboe. The co-venture partners in
Stabroek (ExxonMobil 45%, Hess 30%, CNOOC Nexen 25%) plan to continue the appraisal of Liza
and Payara together with exploration drilling in 2017. The Stena Carron drillship has now moved
10km south of the original discovery well to drill the Snoek prospect, which will test a stratigraphic
trap similar to those found in Liza and Payara.

Meanwhile, Tullow is planning to drill in
Suriname for the first time in H217 on its Araku prospect in Block 54.

Araku: 500mmbbl potential to the east of Liza
Tullow has built up an acreage position covering over 10,800km2
across Block 47 and Block 54
around 200km offshore Suriname and sitting to the east of Liza. In addition to the success at Liza,
oil seeps onshore Guyana and the oil-producing Tambaredjo field onshore Suriname indicate the
migration of oil to shore across the basin. The Araku prospect is located in Block 54 in around
1,000m of water and is operated by Tullow (WI 30%) with partners Statoil (50%) and Noble (20%).
The prospect sits on the Demerara Plateau and on the edge of the basin near the shelf edge break.
It is described by Tullow as being one of its strongest prospects in the last decade and is estimated
to have a resource potential of over 500mmbbls. Araku covers over 330km2
and is a four-way,
dome-shaped structural closure with an Upper Cretaceous Maastrichtian target. A 3D seismic
survey was acquired in 2015 and has provided high-fidelity data that indicate good seismic
amplitude support across the prospect. The company has been particularly encouraged by the
precise conformance between the prospect area as indicated by both structural mapping and
geophysics, thereby giving a good indication of hydrocarbon presence.
If Araku is successful, Tullow has a number of follow-up prospects across both its blocks and
covering stratigraphic and carbonate prospects. A rig is currently being sourced for the well, which
is expected to cost $14m net to Tullow to drill. The gross cost estimate of $40-45m is at a significant
cost reduction to the $100m cost estimate before the current low-cost oil environment.
Tullow also holds acreage offshore Guyana and sitting updip of Liza. The company will carry out a
3D seismic programme over its Orinduik and Kanuku blocks (Exhibit 3) in 2017, with a view to
drilling here in 2018/19

[mariopeter] 15/3/2017 11:56

I am here as I feel they will farm down some of Kenya for cc $3bn in cash. Leaves a very stable Company generating $1bn in cash at $50 oil.

Also chance of a bid as extraction costs are very low at $14 a barrel. Majors are under pressure to reduce their extraction costs and what better way than to snaffle up a wee company like this.

[bookbroker] 15/3/2017 10:49

The debt here is way too high relative to mkt cap., I can not stand cos that base their trajectory on the basis of projections falling nicely into place, this is rarely the case, and with capital investment this co will need to raise capital, debt capacity or not. Ok so we have a relative calm in the Mid-east currently, but i do not see US production tapering off, and there are still some big projects ramping up production still such as Brazil, they talk about a rebalancing, but the US is likely to sell some of their strategic reserve, and rigs that were requisitioned two months ago will still raise production there1

[ifthecapfits] 15/3/2017 08:44

Thanks. I guess the next question is when/how is this due to be paid off. What's the timetable.

[mariopeter] 15/3/2017 08:40

Latest debt was net $4.8 bn
1 bn spare debt capacity

In finals

[sux_2bu] 14/3/2017 18:11

Another gap

Folks, don't panic. The good news is, the other - small - gap is circa 260p to 262p

Just this lower one to get out of the way. Have faith.

[ifthecapfits] 14/3/2017 15:43

Does anyone on here have an analysis of the latest debt position or know where I can find such info. in summary form.

Thanks.

[sux_2bu] 14/3/2017 15:02

It's call sticking my neck out and sticking to my target. At least im honest.

[sux_2bu] 14/3/2017 14:51

circa 220p gap fill approaching. Where are the people who were slagging me off.

[p_dharmendra] 14/3/2017 14:27

Down because oil tanks as OPEC reported Saudi oil production increased despite cut

[nicebut] 14/3/2017 14:20

Just bought 30k...

[ny boy] 14/3/2017 13:25

So much for a takeover!

[mcsean2164] 13/3/2017 16:09

Still in the downward channel...

[olieslim] 11/3/2017 07:50

sorry, wrong thread

[olieslim] 10/3/2017 18:00

WTI just hit 48.28, Brent 51.12.

[olieslim] 10/3/2017 16:28

Sure. Next week will be fun.

[opodio] 10/3/2017 15:50

buys clatteringin

[mariopeter] 10/3/2017 15:47

Exxon may bid for BP. Don't see it myself as operational extraction costs too high at BP. Nice though if this started in the sector. .... now we know a company who has diddly extraction costs

[sux_2bu] 10/3/2017 15:08

Hope it works out NY Boy.

Personally, i'd love to see that gap out of the way to clear the runway.

[opodio] 10/3/2017 14:56

That's my target

[ny boy] 10/3/2017 13:46

Was over 1500p in the good ole days back in 2012

[ny boy] 10/3/2017 13:43

330p back to 240p is an attractive entry point for any bidder