Tullow Oil Share Discussion Threads

[badger36] 15/6/2022 11:36

Peace loving Sweden with a huge arms industry. Supply evil regimes but sure we are in favour of peace Basket case in urban areas with more and more immigrant ghettos Ah wokeness

[subsurface] 15/6/2022 11:00

Hi Thommie,

The High Hedge

I Think it was forced on Tullow as part of the loan requirements the 10.25% hurts and restrictions on early repayment too

The Banks have it all ways.

[thommie] 15/6/2022 10:44

Thats why I dont think the tullow hedging plan is good... It will cost massiv hedging losses if they use the slightly cheaper 2 way collars with a cap again instead of puts only that cost more alone but leave full exposure to rising oil prices... I just hope they learned that risking 1-2$\bbl more by hedging a ground without a cap top the upside is better than getting locked out of realistic higher oil prices throughout the next years... Lets see what happens think time.

[subsurface] 15/6/2022 10:41

I noticed this a few days ago

Sweden is banning the extraction of coal, oil and natural gas and tightening rules on the extraction from alum shale. The ban is entering into force on 1 July this year. According to a statement from the Swedish government, the ban will be an important step in the process of transitioning to a fossil-free society.

I was thinking perhaps we stop them importing Oil /products that will wake them up

Oil Production 12,411 92nd in the world
Oil Consumption 322,109 43rd in the world
Daily Deficit -309,698
Oil Imports 396,510

[xxnjr] 15/6/2022 10:15

Seem to remember Fatil Birol had recently been urging Oil Producers to desist from investing in new oil developments. Always thought that was irresponsible chatter from the head of the IEA. The IEA now say we need more oil, sort of, as reported by the FT:-

"Global oil supply will “struggle̶1; to meet still rising demand next year, the International Energy Agency said on Wednesday, despite early signs that record prices are starting to weigh down on consumption.

In its first 2023 forecast, the Paris-based energy think-tank said oil demand next year will grow by 2.2mn barrels a day to almost 102mn b/d driven by strong demand in developing countries.

At the same time, members of the Opec producers group and its allies, including Russia, will find it harder to keep increasing output to meet rising consumption, it said in its monthly report.

“Global oil supply may struggle to keep pace with demand next year, as tighter sanctions force Russia to shut in more wells and a number of producers bump up against capacity constraints.”

Opec+ members, including Saudi Arabia and the UAE, would have to use more of their already reduced spare production capacity to prevent a balanced market in 2023 from tipping into deficit, the IEA said. “In that case, spare capacity would shrink to just 1.5 mb/d, the lowest level in recent history.”

While the 1.8mn b/d growth in global oil demand this year is being driven by increased consumption in advanced economies as coronavirus restrictions are lifted, 80 per cent of next year’s growth will come from non-OECD countries, the IEA said.

The IEA anticipates a tight market in 2023 even though “sky-high product prices” following Russia’s invasion of Ukraine had already cut demand for petrol and diesel in advanced economies in April and May."

[jackpotjack] 15/6/2022 09:52

Wasnt it down at 5p in covid so a great return in less than 2 years?

[fizzmiss] 15/6/2022 07:30

Wont matter one bit, even if they pumped liquid GOLD; the share price manipulation would continue whilst waldo Ralph keeps his head in the sand regarding such share price corrupt activity.

[xxnjr] 15/6/2022 07:27

Thommie Slide 7 of recent 'Deal' presentation sketches out the various drilling plans.

Enyenra Infill: Starts now, last about 12 months.
Jubilee Infill: Runs to end 2022.
N'tomme Appraisal: Back end of this year.
All 'mix and match' priorities with 1 rig.

Totally agree drilling program seems to be running ahead of schedule which IS really good news. So we maybe getting 2 new production enhancers on Enyenra (60 days each), 2 N'tomme appraisals (35 days each), plus whatever else can be slotted in this year.

Drilling wells on TEN now is the way to go as decline there has been quite severe, with high impact on net production at our w/int %.

July trading update about 30 days away.

[fizzmiss] 14/6/2022 12:54

TLW find massive gas reserves but have to haggle to pump it, basically no oil but plenty gas lol.

And STILLLLLLLLLLLL THE MM manipulate the share price lower for their sewer rat shorting mates whilst the FSA do NOTHINNNNNNNNNNNNG!

[thommie] 14/6/2022 08:48

Well, ofc I knew they contracted this lng volumes, but Im always again stunned by the incompetence of the persons making such decisions. Why would you buy super expensive gas via lng when you are not even able to take enough associated gas from your nearby oilfields to stop flaring it?! Not even thinking of the possible development of non associated gas discoveries.... As the whole world is in need of lng delivery my hope is, that maybe tullow can export their gas via the nigeria link to nigeria where they can produce lng with it...?

[djderry] 14/6/2022 08:26

Most informative posts,thank you.

[subsurface] 14/6/2022 08:10

or some sargassum XX

May be of interest you can see the projected numbers 2023

Report on Ghana gas from Feb 2021

FIGURE 1: Natural gas supply and demand in Ghana, 2019-2023

FIGURE 2: Revenue losses of GNPC and additional debt, 2019-2023



The None associated could also be used as a back up to support the Gas system to industry in Emergency /shutdown situations on the production process facilities
that was done in Qatar many years ago.

I think pressure will be an important consideration

[thommie] 14/6/2022 07:58

I still dont get what they do. To me it looks like they are ahead of schedule in drilling the planned wells. Ofc it makes sense not to drill the strategic wells at ntomme directly because it cant be tied in anyways before early 2023 because of lack of sub sea infrastructure. So workovers could be good gap fillers with immediate benefit to production. But why would you drill a gas production well on a non associated gas discovery when you already have to flare your associated gas and reinject the rest because ghana cant take the whole amount?Cant they drill another additional jubilee producer instead that can be tied in directly? Also this article and statement I just posted about new gas discovery... This non associated field is known since years? What does this refer to?

[xxnjr] 14/6/2022 07:44

Tweneboa Non-associated Gas Field is kind of where the rig has just moved to now Thommie. Could be drilling that, an Enyenra(N) extension or both. OTOH it might just be a good location to snag some Tuna ;-)

[waldron] 14/6/2022 07:33

Thommie
14 Jun '22 - 08:23 - 57570 of 57570
0 0 0





Tullow Oil confirms new gas reserves
21h ago |


Tullow Oil confirms new gas reserves

Tullow Ghana has confirmed the discovery of a new gas reserve, estimated to hold between 1.5 and two trillion cubic feet (TCF) of the hydrocarbons offshore Cape Three Points in the Western Region.

The new non-associated gas reserve is located within the Tweneboa, Enyenra, Ntomme (TEN) and the Jubilee fields.

The Managing Director of Tullow Ghana Limited, Wissam Al-Monthiry, made this known during a virtual interaction with journalists last Friday on the merger between Tullow Oil PLC and Capricorn Energy PLC.

He said although the company had appraised the richness of the gas reserve - a natural gas field, which has no crude oil associated, “I must say we do not have the right to drill it yet as per our petroleum agreement but it is within TEN and Jubilee reservoirs.”

According to the Petroleum (Exploration and Production) Act, 2016 (Act 919), oil companies do not have the right to produce hydrocarbon finds other than what they set out to explore in their initial agreement.

That means if the company’s agreement covers petroleum exploration and it finds gas-only reserves, it has to return to the negotiation table for a new agreement over the resource before it can exploit it.

“All these gas put together, we see an opportunity to be exporting consistently, between 250-mmscf and 300-mmscf of combined associated and non-associated gas for the foreseeable future from Jubilee and TEN,” Mr Al-Monthiry said.


Reliability & efficiency

He said gas from Jubilee and TEN would remain most cost effective, reliable and less expensive for the country compared to any other sources — domestic or foreign.

“We hope the benefits from there would be to the advantage of the people and propel economic growth in Ghana,” the Tullow Ghana managing director said.

By the end of the year, Tullow Ghana would have delivered about 300-billion cubic feet (BCF) of free gas to the people of Ghana as part of the free foundation gas enshrined in the petroleum agreement, Mr Al Monthiry pointed out.


Foundation gas

Mr Al-Monthiry stated that the foundation gas which was free gas to the country would cease at the end of this year and that the company was currently in fruitful discussion with the government on the way forward for the monetisation of the gas for their mutual benefit.

Asked if Tullow Ghana was going to explore for more within the country’s three basins of Accra-Keta, Saltpond and Tano and opportunities onshore, the managing director said the company, which was operating from two out of the country’s three oilfields, was always looking for opportunities and that its transaction with Capricorn Energy PLC gave it financial capabilities to look even further.
Future interests

“We are always engaged with the Petroleum Commission - we have heritage offshore, but we will not also discount the onshore opportunities.

“I must say that in the country’s offshore, there are list of opportunities within TEN and Jubilee that will keep us busy and have us investing billions of dollars in the coming years before anything else,” Mr Al-Monthiry said.

He added that as there were openings, “We have to be considerate in what gives the best among the opportunities available for the interest of the country and all stakeholders.”
Name change

Tullow’s merger with Capricorn Energy PLC, he said, was likely to see a name change.

“We have some time to think through that; we are also conscious of the fact that the name ‘Tullow’ has become a household name in Ghana and we will ensure that a future name will reflect the concentration on Ghana and the fact that Ghana will be at the heart of the company,” he stated.

That notwithstanding, Mr Al Monthiry said “we also want, through the name change, to reflect our future not just our past and we are open to suggestions which have already started with mounting an employee suggestion box for that proposed name that would look at the history and reflect the future.
Background

The boards of Tullow Oil PLC (“Tullow”) and Capricorn Energy PLC (“Capricorn”) earlier announced that they had reached an agreement on the terms of a recommended all-share combination of Tullow and Capricorn to create the combined group.

Under the terms of the combination, each Capricorn Shareholder will be entitled to receive, for each Capricorn Share,3.8068 New Tullow shares.

On completion of the combination, Capricorn shareholders will hold approximately 47 per cent of the combined group and Tullow shareholders will hold approximately 53 per cent of the combined group.

Tullow and its partners will invest over $4 billion over a decade through an ambitious ‘Value Maximisation Plan’ that will deliver over 50 wells and consistent revenue to Tullow and Ghana.

[thommie] 14/6/2022 07:23

hTTps://www.businessghana.com/site/news/business/264663/Tullow-Oil-confirms-new-gas-reserves

[sarkasm] 14/6/2022 06:37

ihsmarkit.com/research-analysis/tullow-oil-and-capricorn-energy-to-give-birth-to-a-tullicorn.html



Tullow Oil and Capricorn Energy to give birth to a Tullicorn, a Caprillow… or maybe a Unicorn?
15 June 2022 Alessandro Piccoli Cyril Ruchonnet Etienne Kolly

As of mid-year 2022, Tullow Oil and Capricorn Energy were about forming a new Africa-focused energy company. They reached agreement to create a combined group on the terms of a recommended all-share combination of the two companies. The name of the new group is yet to be determined.


Contract Details

According to the management of the two companies, this combination has the potential to create a new energy company with a material and diversified asset base and a portfolio of investment opportunities. The aggregated pan-African upstream portfolio will be underpinned by low-cost producing assets having a high potential return on investment in Ghana, Egypt, Gabon and Côte d'Ivoire. On top that, and as shown in the charts below, Tullow also operates several onshore assets in Kenya and both companies are present offshore Mauritania.

On completion of the combination, Capricorn shareholders will hold approximately 47 % of the combined group and Tullow shareholders will hold approximately 53 % of the combined group. It is intended that the combination will be implemented by means of a court sanctioned scheme of arrangement under Part 26 of the Companies Act, where Tullow will acquire all of the issued and to be issued Capricorn shares under the terms of the combination, each Capricorn shareholder will be entitled to receive: for each Capricorn share: 3.8068 new Tullow shares.

Alongside of their announcements Tullow and Capricorn stated that the combination of the two companies will create robust cash generation, a resilient balance sheet of USD 1.8 billion of liquidity and cost synergies.


Deal History

Interestingly, Tullow and Capricorn (formerly named Cairn Energy until December 2021) yet partnered in Cote d'Ivoire, where together they controlled the entire onshore fringe of Cote d'Ivoire Basin between 2017 and 2021. However, after a Full Tensor Gradiometry (FTG) survey in 2019 and an aborted 2D seismic campaign in 2020, both companies relinquished their valid contracts.


Impact in Africa

As of 31 December 2021, the production of the combined companies was of 96 kboe/d (76%) liquid) split between Ghana (44%), Egypt (38%) and others (18%) and their combined 2P remaining reserves amounted to 343 MMboe (75% liquid) divided between Ghana (62%), Egypt (26%) and others (12%). At the same time, their combined 2C resources (contingent resources) were estimated at 696 MMboe split between Ghana (45%), Kenya (33%), Egypt (10%) and others (12%).

The merger of Tullow and Capricorn will create a complementary portfolio for the new combined group.

Tullow Oil is mainly active in Sub-Saharan Africa:

In Ghana, the company operates deepwater productive assets (Jubilee and TEN group of fields).

In Kenya, Tullow operates four promising onshore exploration blocks in the Eastern Africa Rift System.

In Gabon, the company partners with Perenco and Maurel & Prom in the Gabon Coastal Basin, and with Vaalco in the Lower Congo Basin.

In Cote d'Ivoire, Tullow has interest in CNR's producing block CI-26 and operates one deepwater block that adjoins the border with Ghana.

In Mauritania, Tullow is partner with Pertronas in the offshore Area B/Chinguetti oil prone permit.

Capricorn Energy is exclusively active in North Africa:

In Egypt, Capricorn has a significant presence in exploration and production assets with partner

Cheiron Petroleum, after taking Shell's Western Desert assets in September 2021.

The producing fields are split over four concessions, Obaiyed, Badr El Din, North-East Abu Gharadiq, Alam El Shawish West and North Alam El Shawish West.

The net production averaged 36,500 boe/d from the acquisition completion to year end 2021 (38% of the production mix being oil and condensate). Still in the Western Desert, the company's exploration assets with partner Cheiron Petroleum include the Southeast Horus, West El Fayum and South Abu Sennan concessions.

In Mauritania, the company operates the promising C-7 gas prone permit (including the Cormoran discovery), in the Senegal (M.S.G.B.C.) Basin.

The below chart indicates the estimated 2P Net EUR Reserves for both companies, as of June 2022, according to IHS Markit EDIN database (now part of S&P Global).

Posted 15 June 2022 by Alessandro Piccoli, Technical Research Principal and

Cyril Ruchonnet, Technical Research Associate Director, IHS Markit and

Etienne Kolly, Associate Director, Upstream Intelligence, IHS Markit

This article was published by S&P Global Commodity Insights and not by S&P Global Ratings, which is a separately managed division of S&P Global.

[thommie] 14/6/2022 06:18

I hope only puts!! At current oil prices you can risk this extra 1-2 dollar per barrel for full participation on possible rising oil prices in the future...