Tullow Oil Share Discussion Threads

[sux_2bu] 11/4/2017 10:43

Buy at 100p

[glenkaz] 11/4/2017 09:55

Typical! Why the drop!

[typo56] 11/4/2017 08:26

But if you were short you would have bought the ords no?

Yes, but what if nil paid shorts have been called in? I was unable to open a new short on the nil paids through IG, but then they're tight on these things.

[ny boy] 10/4/2017 23:19

Moving on up!

[phillis] 10/4/2017 20:27

Must be
But if you were short you would have bought the ords no?

[typo56] 10/4/2017 20:02

Intended to take up the rights but the price got v toppy late Friday

Indeed it did. You could sell TLWN for getting on for 130p and then use the proceeds towards buying TLW for 230p. So effectively taking up the rights at 100p rather than forking out 130p. Nice.

But why this bonkers difference? Something to do with shorts landed with positions in TLWN?

[glenkaz] 10/4/2017 19:59

It's so complicated it put me off buying at £2 when I realy wanted to mow in at 239 and happy! Gla!

[larva] 10/4/2017 19:22

Get ready for pumped up prices! Here's why RBC's Helima Croft says crude could surge nearly 20% within months



Crude prices to grind higher: RBC Crude prices to grind higher: RBC
Thursday, 6 Apr 2017 | 2:45 PM ET | 01:38
Get ready to open up your wallet a lot wider at the gas pump.

A major Wall Street bank is reiterating its bullish call on crude oil, as the fossil fuel sits at four week highs following this week's U.S. missile attack on Syria.

RBC Capital Markets Head of Commodity Strategy and CNBC Contributor Helima Croft predicts prices will climb to the low $60s within months — a nearly 20 percent move from current levels. That would translate to roughly a $1.80 gasoline spot price.

"We see it grinding higher over the back half of the year," Croft told "Futures Now," recently. "We're coming out of refinery maintenance season. So, we're going to start to see draws of the U.S. inventory. Those high U.S. inventory numbers have really been depressing prices."

Summer driving season will also give prices a "boost," and demand won't fall anytime soon, according to Croft.

Crude initially jumped two percent in reaction to U.S. airstrikes on Syria before giving back some gains. The commodity settled up one percent on Friday to $52.24 a barrel, its highest settle in a month. However, crude is still down nearly three percent so far this year.

The latest activity overseas isn't moving the needle on Croft's oil forecast... yet.

She said there's no real immediate supply disruption threat, since Syria's six-year-old civil war has moved the majority of local production offline.

However, she pointed out a few wildcards, which include potential new strains between Russia and the Sunni Arab Gulf Cooperation Council (GCC) states, and whether the U.S. strikes could give hardline candidates a lift in Iran's presidential election in May. These situation could also propel prices higher.

In a research note out Friday, Croft wrote, "If these strikes are not followed up by a serious effort to oust the Syrian leader [Bashar Assad], none of these scenarios may materialize and the oil implications will remain negligible. However, given that President Trump had previously signaled deep disdain for humanitarian interventions and Middle Eastern military engagements, we are now in uncharted waters...."

Nearer term, Croft lists OPEC as a key factor in the direction of oil prices. She believes OPEC's next meeting on May 25 could have more immediate impact.

[larva] 10/4/2017 19:20

Could jump 15p tomorrow

[glenkaz] 10/4/2017 19:16

If oil stays up are we gonna keep rising🤔

[billy_buffin] 10/4/2017 17:22

'Mr Shorty' now pulling in his horns



TLW 14.87% to 12.53%

[phillis] 10/4/2017 15:57

Typo
Intended to take up the rights but the price got v toppy late Friday

[ny boy] 10/4/2017 15:29

Decent move!

[leedskier] 10/4/2017 14:15

Typo56, I am aware that there will be a market for the Nil Paids not taken-up, but since the (Delete sharks, insert) Underwriters have little or no concern for those not taking-up rights, but do have an interest in shifting the Nil Paids, the amount they are auctioned off for, is not a prime concern.

[robo175] 10/4/2017 13:46

And the more rights taken up the better for sentiment too.

[ny boy] 10/4/2017 13:45

Royal Shell Dutch will fight it out with BP for the Tullow prize imho

[typo56] 10/4/2017 13:43

As the Underwrites have to pay out the Nil Paids which are not exchanged for a fully paid share, they clearly have an interest in the value falling too.

Wrong way round.

As long as TLW trade at a premium to 130p they'll be a market for the rump and it will get placed. The underwriters will simply bank their fee.

What would bother the underwriters is if the rights issue bombs and TLW trades below 130p. Then they're faced with paying up for stock they can't shift.

[glenkaz] 10/4/2017 13:43

Hi all! I really have no clue here! I was going to buy 2 days ago! Got fed up and now it's 20% up so I have now got in at 239 how are the rights going to affect sp! Can someone kind help! And is this going back over £3 if oil behaves! Thanks 👍🏻

[leedskier] 10/4/2017 13:34

OK

Having commented that NP are treated and traded as leveraged options, the question is what happens to the value of these options as the date when these cease to be traded approaches?

Like any option the longer the time before expiry, the more valuable they are. Conversely as the expiry date approaches their value falls. As the Underwrites have to pay out the Nil Paids which are not exchanged for a fully paid share, they clearly have an interest in the value falling too. The lower the nominal value the less they pay out.

So for those thinking of selling their Nil Paids rather than taking-up their rights, timing may be quite important.

Here is the teaser, as the date when the fully paid shares are listed gets closer, the higher the value of the shares.

Now of course circumstances may change, for example the price of oil may rise, or fall, which can impact the value of both the shares and Nil Paids.

As for taking up the rights to convert the Nil Paids into fully paid up shares, the share brokers should have sent out emails. Or their websites should provide advice.

[opodio] 10/4/2017 13:30

Im hoipedul we may see 340p

[robo175] 10/4/2017 13:30

From my broker-


Action required before 20th Apr 2017 16:30
Tullow Oil plc recently announced details of a Rights Issue giving you the opportunity to buy additional Shares. As a holder of Tullow Oil plc Shares in your Hargreaves Lansdown Account you are entitled to participate in the Offer.
What are my choices?
Under the terms of the Rights Issue Shareholders have been credited with 25 Tullow Oil plc Nil Paid Shares (Rights) for every 49 Shares held at the close of business on 5 April 2017.
You have 3 options to consider in respect of these Rights and these are explained below in more detail.
Option 1 - Do nothing. If you do not return an election by the deadline of 4.30pm Thursday 20 April 2017, the Offer will lapse and your Rights will be removed from your portfolio. If a lapsed Rights cash payment is made it will be credited to your Account upon receipt.
Option 2 - You can take up your Rights in full or in part. Each Right may be used to purchase one Ordinary Share at a price of 130p per Share.
Option 3 - You can sell your Rights. You can sell your Rights in the market subject to a special flat rate commission of £10.00. The proceeds will remain in your Account. Please note that if you wish to sell your Rights at the prevailing market price you should contact our Dealers on 0117 980 9800 (N.B. we are unable to accept instructions to sell your Rights that are sent via our website and such instructions will not be executed).
Any instruction to take up or sell Rights must be received in this office by 4.30pm Thursday 20 April 2017. If no instruction is received the Offer will lapse.
Full details of this event will be sent to Qualifying Hargreaves Lansdown clients by either post or secure message. Please note that any instruction you give must be based on the full details provided in the letter and not on the summary information outlined above.
You currently hold 3,157 shares.

Please select an option for your HL Vantage SIPP Income Drawdown. If you have any questions please call our Investment Helpdesk on 0117 900 9000.

If you enter more than one instruction please note only the most recent will be accepted and any previous instructions will be disregarded.

Take up my Rights in full
Take up my Rights in PART (Please specify amount)

[trikytree] 10/4/2017 13:10

If you did want to take up the options how do you do it? I can't see any option to pay the 130 on AJB.
Also what happens on 25/04 if you don't sell them or pay the 130?

[trikytree] 10/4/2017 12:57

But you can sell them for 117. 117+130 is a higher cost than the current value?

[jamiebrim] 10/4/2017 12:54

Does it not make sense to take up the rights at 130p if they're trading at 230p? I don't understand why you would sell them?