Tullow Oil Share Discussion Threads

[amaretto1] 23/4/2020 07:24

I knew total were buying ...but the price is half, what I was expecting

[florenceorbis] 23/4/2020 07:23

Tullow Oil plc - AGM Trading Update

23 April 2020 - Tullow Oil plc (Tullow), issues the following update ahead of its Annual General Meeting which is being held via an audio cast at 12pm today. Details of how shareholders can join the Group's AGM can be found at the end of this update and on www.tullowoil.com / AGM . This morning Tullow has issued a second press release detailing the sale of its Uganda interests to Total.

Dorothy Thompson, Executive Chair, Tullow Oil plc, commented today:

"I am very pleased with the material progress Tullow has made in the first quarter of this year given the challenges facing the Group after our performance in 2019, the COVID-19 pandemic and recent very low oil prices. This week, we have announced two significant milestones with the agreement to sell our Uganda interests to Total for $575 million in cash and the appointment of our new CEO, Rahul Dhir. The sale of our Uganda assets is an excellent first step towards our target of raising over $1 billion of proceeds to reduce net debt, strengthen the balance sheet and secure a more conservative capital structure.

"Operationally, we are delivering well against our production targets following improvements put in place by our asset team in Ghana and we have made significant changes to the structure and cost base of our organisation. Finally, the recent successful redetermination of our Reserves Based Lending facility (RBL) has underpinned Tullow's liquidity and the strength of our assets.

"I would also like to thank Steve Lucas, who retires from Tullow today at the end of the AGM. Steve has served on Tullow's Board for eight years and has provided great insight, support and expertise as a Non-Executive Director and as Chair of the Audit Committee."

Trading update

Highlights

-- Sale of Uganda interests to Total for $575 million in cash announced this morning; first step in raising >$1 billion in proceeds

-- Appointment of new Chief Executive Officer, Rahul Dhir, who will join Tullow from Delonex in July 2020

-- Group production delivering in line with expectations in the first quarter of 2020

-- Successful redetermination of RBL facility confirming headroom of c.$700 million at start of second quarter

-- Thorough business review completed resulting in a smaller, more efficient organisation and reduced cost base

Operational

-- Group production in the first quarter of 2020 averaged 75,800 bopd, in line with expectations; Tullow's full year guidance remains 70,000 - 80,000 bopd

-- Gross production from the Jubilee field averaged 79,200 bopd (net: 28,100 bopd) in the first quarter of 2020. The field continues to perform well with improved uptime and reliable gas offtake allowing recent rates above 90,000 bopd gross

-- Gross production from the TEN fields averaged 51,700 bopd (net: 24,400 bopd) in the first quarter of 2020. Work on the Ntomme-9 production well continues and the well is expected to come on stream in June

-- Production from the Group's non-operated portfolio averaged 23,300 bopd in the first quarter of 2020, in line with expectations and taking into account planned shut downs at Espoir in Côte d'Ivoire and Ruche in Gabon

-- In exploration, Tullow continues to pursue potential farm downs of its exploration licences to reduce equity interests ahead of drilling and further reduce costs

COVID-19

Tullow continues to manage its operations carefully in light of COVID-19 and the Group is adhering to procedures and restrictions put in place by its host countries:

-- Production operations in West Africa have so far not been affected. In Ghana, Government exemptions have been made to allow charter flights for oil and gas workers into the country, enabling crew changes to occur. Tullow is then requiring all personnel to self-isolate in Ghana for two weeks before transferring to its FPSOs to ensure that the risk of a COVID-19 outbreak offshore is minimised

-- In Kenya, a number of key workstreams have been suspended due to COVID-19 restrictions and while focus remains on the critical activities required for a Final Investment Decision (FID), Tullow will continue to monitor the impact these restrictions may have on the FID target

-- In exploration, seismic acquisition continues in Argentina but the seismic programme in Côte d'Ivoire has been interrupted after Force Majeure was declared by the service provider in light of COVID-19 restrictions

Financial

-- Tullow has agreed to sell its entire stake in the Lake Albert Development Project in Uganda to Total for $575 million in cash plus post first oil contingent payments (see separate announcement released this morning)

-- Successfully completed RBL facility redetermination, confirming $1.9 billion of debt capacity and headroom of c.$700 million at start of second quarter

-- Further $85 million of cash savings identified to reduce capex to c.$300 million and decommissioning spend to c.$65 million

-- 60% of 2020 sales revenue hedged with a floor of c.$57/bbl and 40% of 2021 sales revenue hedged with a floor of c.$53/bbl

-- First quarter 2020 realised oil price of c.$56/bbl including the benefit of c.$27 million of net hedge receipts during the period

-- Completion of sale of Uganda assets will be the first step towards raising in excess of $1 billon proceeds through portfolio management; continued focus on progressing options to achieve this target

Board & Management

-- Appointment of Rahul Dhir as Chief Executive Officer and an Executive Director of the Group from 1 July 2020. Rahul joins Tullow from Delonex Energy, where he was CEO of the Africa-focused oil and gas company. Prior to Delonex, Rahul served as Managing Director and CEO of Cairn India

-- Steve Lucas will step down from the Board following today's AGM and Martin Greenslade will take over as Chair of the Audit Committee

________________________

[asusasus] 23/4/2020 07:19

What share price can we put on TLW now after raising $575 million in cash with additional cash on first oil sold by Total!!?

[sbb1x] 23/4/2020 07:18

Can someone share that rns on Twitter and put the hash tag #tlw

[sbb1x] 23/4/2020 07:16

Yep!Where are the derampers from yesterday......

[asusasus] 23/4/2020 07:15

Can this double today!!?

[teamwork1] 23/4/2020 07:14

We sold too cheap

[bigbigdave] 23/4/2020 07:13

Disposal twice the current mkt cap of TLW

[mirabeau] 23/4/2020 07:12

Not a holder but interested watcher.

I think the Ugandan exit is exactly what Tullow needed to do. Raise cash, reduce indebtedness, strengthen their balance sheet (which is vital for investor confidence). Strip the business right back to its bare bones and start on a fresh page. Today's news is exactly what I believe they should be doing.

Of course they're divesting at precisely the wrong time. They should have exited Uganda some time ago when oil prices resided at a higher level but that's hindsight.

Maybe this exit has been forced upon them by the company's creditors. Either way, it's an exit that gives them breathing space and will allow them to plan for a less indebted future

[sbb1x] 23/4/2020 07:09

Good day for shorters lol.140 million shares boysSammy buying more 40p anyone ?

[umitw] 23/4/2020 07:06

575 million, how does it impact on share price?

[subsurface] 23/4/2020 07:04

great exit Uganda

[sbb1x] 23/4/2020 06:58

30p next week.Dopey dorothy was the weak link.This new guy is the real deal people!

[leoneobull] 23/4/2020 06:54

This all points to a huge comeback for oil prices. As the world rushes to scale back oil production, they are setting up a bull market for the future. "When we are on the other side of the pandemic, we think oil demand will normalize very quickly. And next year, we could even see unprecedented inventory draws and the world quickly running out of spare capacity," Westbeck Chief Executive Officer Jean-Louis Le Mee told MRT in an interview. "That rout will mean more U.S. shale producers will have to throttle back output, some of which could be permanent, [...]. The shut-ins, coupled with a recent deal by OPEC and allied members to curb production, could set the stage for a price rebound in coming years."U.S. shale had already been in serious decline as West Texas wells aged and the gush of the shale revolution. Now, with the oil price crash, the Permian Basin has been burdened with bankruptcies and tens of thousands of fired and furloughed employees. So when we are able to return to business as usual, there will likely be a shortage of spare capacity. Low supply, high demand. That's how these things work. Keep an eye out for $100 barrels coming down the pike.

[orchestralis] 23/4/2020 06:54

Priscilla filtered

[leoneobull] 23/4/2020 06:50

Ramp of the day. 15 usd or.......100 usd down line when shale decline takes millions out of mkt?https://oilprice.com/Energy/Oil-Prices/How-Oil-Prices-Could-Go-To-100.html

[leoneobull] 23/4/2020 06:13

Brent 22.82 . GLA? stay safe, wash your hands regularly

[sbb1x] 23/4/2020 00:12

Who needs higher oil Saudi Arabia Could Borrow Record $58 Billion as #Oil Slump Bites - https://t.co/ni2qn7ocoJ

[master rsi] 22/4/2020 23:58

The TRUTH

LSE closing
TLW 20.29p +4.01p +24.63%

USOTC US
UWLF $0.28 +0.08 +38.00%

[cool hand kev] 22/4/2020 23:21

For starters

[asusasus] 22/4/2020 21:42

23p tomorrow

[leoneobull] 22/4/2020 21:09

See RNS. GS issued a TR1 notice today. Cheers