Tullow Oil Share Discussion Threads

[loafofbread] 14/12/2019 09:14

As i mentioned earlier, Total and CNOCC will carve this up between them.

They will move quickly as they know the assets giving them first mover advantage.

£1.20 would be my guess as an acceptable level for the BOD to fold.

[stockport loser] 14/12/2019 08:52

Ugandan deal expected still to go through Q1, unless Total take the whole company. Get hedging above $65 and Tlw should be fine albeit with some tough finance renegs to start next year.

[wodahsnoom] 14/12/2019 08:22

Kosmos said a few months ago that the jubilee operator had deferred remedial work until 1st quarter 2020 presumably because they didn’t have the money. Gahnain govt couldn’t have Been too impressed given the re-introduction of the dividend

[wodahsnoom] 14/12/2019 07:05

Turvart - they just did fire their ceo LOL and interesting theory that the board manipulated the share price collapse in order to line their own pockets LOL - must investigate how that worked out for them LOL

[oilretire] 14/12/2019 06:09

Speculation on Total probably started when they read someone guessing they'd be interested on this board ;-)

Anyway, plenty downbeat weekend press. This one mentions the S&P credit rating being cut yesterday...... and worrying times if $55 oil was the norm.

Let's hope they are busy hedging a bit more of the 2020 production. Every monthly contract is currently over $60.

[subsurface] 14/12/2019 01:24

The Total report started in africa everything is speculation at the moment,
three pointers for me are
Tullow failed to gain new blocks in Ghana though were well placed
Ghana are trying to increase production not decrease it.
Those who invested on the Ghana exchange under the Tullow shared prosperity scheme like the rest of us have lost out.including the Ghana pension fund.
On the latest RNS I note that it stops short of saying investigation of the CEOs
but they did depart very quickly?
I hope all will become clear in time,a report from moneyweek

[tomford8] 14/12/2019 00:48

Total to be named new owner of Tullow Ghana and operator of Jubilee Oilfield

December 14, 2019

Comments by Sabina Vorsah, Alex Mould, Angus McCoss, Dorothy Thompson, GNPC, Les Wood, Mark MacFarlane, Paul McDade,

TEN oilfield, Total Oil, Tullow Oil

Information gathered by www.newsguideafrica.com is that, Tullow Oil Ghana (Operator of Jubilee Oilfield) is in search of a new owner in Ghana with the most probable being Total Oil

The French giant, whose operations overlap all of Tullow’s assets.
It is established that Total, unlike Tullow, has a strong reputation as an efficient offshore operator and also has links to cash-rich Qatar Petroleum. This news is breaking in the same week that Tullow Oil shocked the oil world when the Chief Executive Officer, Paul McDade and Exploration Director, Angus McCoss, all Board Executive members, resigned with immediate effect by mutual agreement over underperformance over the years. Tullow also suspended dividend payments.

A Financial and Energy Expert is of the view that, although all is not gloomy with the current operations and production at the oilfields in Ghana; Tullow still has one of the world’s best assets in Jubilee Oilfield – a low-cost producer and now considered a brownfield and a cash cow. However, Tullow has to transform from an exploration to a matured producing company; this will mean major restructuring and massive layoffs.

“Let’s hope Ghana government will stand firm to ensure that the right “fat” is cut – mainly expensive unnecessary head office staff and expatriates, NOT the highly qualified lower-paid Ghanaians”, Alex Mould, former Chief Executive of the Ghana National Petroleum Corporation.

Mr Mould further admonished that, the partners should make sure, the Operator of Jubilee Field (Tullow) eliminates those “unnecessary highly paid cushy jobs at their CHISWICK Head Office”, whose time writing charges are suspected to be inflating the cost of oil production of their Ghana operations.

In the meantime, “the Ghana government needs to negotiate with the contractor group partners to ensure that there are minimal Ghanaian casualties at Tullow Ghana Limited — a Company registered in Jersey, UK and indirectly owned by Tullow Oil plc, through its Dutch subsidiary”, he added

Jubilee offshore oilfield was discovered in 2007 by Kosmos Energy and developed by Tullow Oil.

Equity partners of the Deepwater Tano block are; Tullow with 49.95%, Kosmos with 18%, Oxy with 18%, PetroSA Ghana with 4.05%, and Ghana National Petroleum Corporation (GNPC) with 10%.

While West Cape Three Points is held by Tullow with 22.9%, Kosmos with 30.88%, Oxy with 30.88%, PetroSA Ghana with 1.85%, GNPC with 10%, and EO Group with 3.5%.

According to experts, it is imperative that the government of Ghana has emergency meetings with the top echelon of Tullow to discuss: the quantum of investment needed in Greater Jubilee to sustain production average of 100+ kbbl/d levels; Tullow’s ability to meet cash calls for further development drilling giving their balance sheet challenges; and Tullow Oil Plc giving the Ghana business – Tullow Ghana Limited – the autonomy needed to properly manage the Jubilee and TEN assets as against driving these businesses to provide, at any cost, the needed cash flows to sustain Tullow Oil Plc’s ambitions in Guyana and in East Africa.

It is believed that Tullow’s unsuccessful forays into East Africa is the main reason for the strain on Tullow Oil Plc’s fragile balance sheet. Tullow’s next hope was Guyana, but miscommunication of the type of oil and the difficulties associated with producing it have caused investors to lose hope on this once shining beacon in the E&P world.

Meanwhile, the London-based International Oil Company on Monday noted that, “Whilst financial performance has been solid, production performance has been significantly below expectations from the group’s main producing assets, the TEN and Jubilee fields in Ghana.”

The company’s production for next year is pegged at 70,000 to 80,000 barrels a day, down from the 87,000 a day expected for this year. As well, production for the next three years will hover around the bottom of that range.

“This is likely to have a negative impact on the valuations of Tullow’s key assets,” Al Stanton, an analyst at RBC Europe Ltd., said in a note. “We expect the pace of exploration activity, and therefore news flow, to be reined in.”

The executive departures come after a year of disappointments at Tullow, where technical difficulties have hampered output in Ghana, projects in Uganda and Kenya have faced delays and results from wells in Guyana missed expectations. The company reduced its 2019 production forecast several times as the glitches in Ghana dragged on.

The shares sank 57% to 60.64 pence as of 10:28 a.m. London time, the biggest decline since they started trading in the city 30 years ago. The stock has dropped 66% this year and more than 90% since 2012. Tullow’s dollar notes due 2025 declined the most since they were issued in March 2018.

“There is a risk that the market will lose sight of the true value of our underlying assets,” interim Chairman Dorothy Thompson said by phone, insisting that the Jubilee development and Uganda reserves remain world-class oil fields. The company is conducting a review “to create a sustainable business, which we believe we can do,” she said.

Thompson declined to comment on whether Tullow is actively seeking buyers but reiterated the standard position that the company would always be open to any offers that were attractive to shareholders.

Mark MacFarlane, executive vice president of East Africa and non-operated, has been appointed a chief operating officer in a non-board role, according to a Tullow statement. Les Wood continues as a chief financial officer. The board has started a process to find a new CEO and is talking to internal and external candidates, Thompson said.

The company will reduce capital expenditure, operating costs and corporate overheads, it said. It sees underlying free cash flow next year of at least US$150 million at US$60 a barrel after a capital investment of about US$350 million.

CFO Wood said that Tullow is in a “strong financial position” and that “reducing our debt pile will continue to be our priority.” He conceded that “in the short-term, it will be going a little slower.”

Source: newsguideafrica.com

[master rsi] 13/12/2019 23:48

67.80p +7.14p +11.77%
4 days of uptrend on the chart, and over 10% UP every day

[turvart] 13/12/2019 22:26

Think about this carefully how this fall happened and make your own mind up, some people who hold this are nervous about future drilling results, they called a board meeting and had a chat about how they could influence profit for their own pocket and word the RNS to cause havoc but at the same time put doubt into peoples minds about the actually RNS and serious investors who know best of this stock buy from 40p and everyone are a winner, this was a set up.

[master rsi] 13/12/2019 22:22

Have any of you heard about this .........

Total to be named new owner of Tullow Ghana and operator of Jubilee Oilfield
Dec 12, 2019

Information gathered by News-Guide-Africa is that, Tullow Oil Ghana (Operator of Jubilee Oilfield) is in search of a new owner in Ghana with the most probable being Total Oil - the French giant, whose operations overlap all of Tullow’s assets...

...According to experts, it is imperative that the government of Ghana has emergency meetings with the top echelon of Tullow to discuss: the quantum of investment needed in Greater Jubilee to sustain production average of 100+ kbbl/d levels; Tullow’s ability to meet cash calls for further development drilling giving their balance sheet challenges; and Tullow Oil Plc giving the Ghana business - Tullow Ghana Limited - the autonomy needed to properly manage the Jubilee and TEN assets as against driving these businesses to provide, at any cost, the needed cash flows to sustain Tullow Oil Plc’s ambitions in Guyana and in East Africa.

Source: www.newsguideafrica.com/2019/12/total-to-be-named-new-owner-of-tullow.html

[turvart] 13/12/2019 22:03

If you read that RNS from Monday its very technical how its worded and I honestly think IMO there is more behind this than you think, it wasn't clever it was there to be done.

[turvart] 13/12/2019 21:58

How about this for a scenario, how about this was planned and they got other people to buy shares for them and now they are making a fortune?

[turvart] 13/12/2019 21:42

How can you fire the CEO LOL? how about I go to work on Monday and fire my CEO? you can't just fire CEO's in any company, most need a board meeting and agree to step down, its not easy to fire the CEO.

The board probably didn't like the ways they were doing things and offered them a package to step down and they agreed, but you just cant point blank fire the CEO PMSL.

[oilisgold] 13/12/2019 21:38

Ya, she threw the kitchen sink to get all bad news out the same time. Market over reacted and panic set in. Every one started selling and hence 40p. 40p was never warranted and the decline should have stopped around 80p.

[wodahsnoom] 13/12/2019 21:30

But you also fire your ceo/coo for some serious reason

[turvart] 13/12/2019 20:53

If you read that RNS from Monday and read it over and over, its not actually that bad, what happened IMO was it came out, the share price gapped down and like others have stated it took out stops, shorters jumped on board etc etc, but the reality is IMO that RNS is not actually that bad.

[umitw] 13/12/2019 19:36

https://www.ii.co.uk/analysis-commentary/stockwatch-why-fears-tullow-oils-demise-are-overdone-ii509955?utm_source=IBMW&utm_medium=email&utm_campaign=ii_Afternoon_round_up_newsletter_131219&utm_content=&spMailingID=8105318&spUserID=MTIxNjc2NDI5MjIzS0&spJobID=1412302481&spReportId=MTQxMjMwMjQ4MQS2

[oilisgold] 13/12/2019 18:30

To be honest feel like on Monday most holders got POUNDED PANTS DOWN AND FLEECED. Traders then took over. I just hope it can continue for at least another week. Need 1pound and then liss be only 50%.

[cielos] 13/12/2019 17:49

good finish another 11.77% to add to yesterday's rise.
Brent has turned bullish on the constant up and down, but rising to $65.18 almost one dollar higher.

[whites123] 13/12/2019 17:17

Master RSI13 Dec '19 - 16:08 - 37686 of 37702
0 0 0
So far so good is holding strong @ 68p

Volume is not so large as yesterday

Master RSI13 Dec '19 - 16:25 - 37691 of 37702
0 0 0
There are few "0" buy trades in the ticker, when normally are "AT" moving up from the support 68p on the last few minutes

You are embarrassing yourself.
Do you know anything about the markets? How they work? Rules on reporting?

[teamwork1] 13/12/2019 17:12

That's why M&G bought 5.23% of the shares