Tullow Oil Share Discussion Threads

[leoneobull] 23/4/2020 07:38

57 usd 45000 a day hedged 2020. Asset sale 575m . D'uh. Hardly insolvent

[amaretto1] 23/4/2020 07:37

it will be lucky to survive

[bookbroker] 23/4/2020 07:37

This company is technically insolvent, someone explain to me the current value of tangible assets with oil prices around $20 a barrel minus the debt.

[leoneobull] 23/4/2020 07:36

575m usd for 100% is a lot less than the 900 m usd for a lower equity stake back in August. But a bird in hand is worth 2 in bush....they will achieve 1 billion asset sales by selling Kenya and farming down Guyana. Orinduik. This will enable debt to become much more manageable and get production back higher in Guyana. That plus hedging amazing in 2020.

[sbb1x] 23/4/2020 07:36

The weak link was dopey, now this new guy coming in I see clear blue sunny skies.Shorters need 140m sharesSammy will buy more.Big guns like GS are burying.This will be back to 60s soon enough.

[marmar80] 23/4/2020 07:35

What is the breakeven oil level for Tullow?

[mirabeau] 23/4/2020 07:35

sif -

TLW's management have sent a positive message to the market and that ain't no bad thing. They've recognised the major concern for investors is company indebtedness and they've acted to try and partially address that concern. it's a pity it's been forced upon them

I'd be surprised if this doesn't rally hard.

I'm in other shares but I do wish I had bought at 8p, pity.

Good luck holders

[sif12] 23/4/2020 07:35

Elsa.. yep and low sale price compared to book value actually worsens net position...

But i still expect people to see 575 against a mcap of less then 200m and draw their own conclusions :)

[asusasus] 23/4/2020 07:32

Yes fair enough it's 50 percent towards proceeds target of $1 billion.

[leoneobull] 23/4/2020 07:31

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

[elsa7878] 23/4/2020 07:31

Errr. $2.8 billion in debt....hello does anyone on here read the accounts?

[p winky] 23/4/2020 07:31

It's the sale price ok?

[amaretto1] 23/4/2020 07:31

its in a bad position

[sbb1x] 23/4/2020 07:31

Plus they all ready had 350m dollars in the bank575m 350m925 million hmm cash

[asusasus] 23/4/2020 07:29

Bookbroker they have just added $575 million to their cash pile and reduced their debt by 50%. This will at least double today with POO surging overnight!

[sif12] 23/4/2020 07:29

Mirabeau same position and share your thoughts

an assets sold doesnt materially change the net position. Yes cash is good to have but they still have debt. So its not like the cos worth anymore. Although I imagine itll still be good for the share price in short term.

The hedges for this year and next year as has been said are the key factor. So unless poo stays below 15 for rest of year they should make money

[frazboy] 23/4/2020 07:29

Smartie - I think it was in the accounts for $1.3bn

[wildsheroo] 23/4/2020 07:28

900m was the value for Uganda's asset

[bookbroker] 23/4/2020 07:27

It’s a start, but the reason this is valued where at £275mln is because of the debt pile, and are they making any money on the current oil price, NO, and still investing in their existing fields.

[allseeingeye1] 23/4/2020 07:26

Wow! Just wow, they have sold the Ugandan assets for £575 million, twice the current market cap, no wonder Goldman brought in ;), therefore share price should open a minimum of 60p but with oil prices up and new CEO could be 80p those that got in yesterday will double there money here. Well done to those. Absolutely crazy

[wildsheroo] 23/4/2020 07:26

Raising 1 billion, means more shares will be issued for £500 m

[smartie6] 23/4/2020 07:25

What level of discount have they given on Uganda? What was the value attributed within the balance sheet?
Why has the sale been backdated? Have they had cash upfront already. Can anyone read between the lines?
As a result will there be a write down in their accounts or was this previously attributed?

[sbb1x] 23/4/2020 07:25

That's 465 million pounds.Current mkt cap is 280m20p = 280m mkt cap30p = 420m mkt cap35p =490m mkt cap40p =560m mkt cap

[amaretto1] 23/4/2020 07:24

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