Tullow Oil Share Discussion Threads

[xxnjr] 30/11/2023 11:12

2026's

The Final Acceptance Amount, representing the final aggregate principal amount of Reg S Notes accepted for purchase by the Company pursuant to the Offer, is $ 114,755,000.

Tullow will use approximately $102.5 million of cash on balance sheet to fund the purchase of $114,755,000 in aggregate principal amount of Reg S Notes, excluding Accrued Interest. This transaction delivers a value accretion of $ 41.1 million from a combination of $ 12.2 million net debt reduction and coupon savings to maturity of $ 28.9 million.

Tullow elects to set the Maximum Purchase Price, as determined pursuant to the Unmodified Dutch Auction Procedure, at 90.500%, achieving a weighted average purchase price of 89.334%.

Richard Miller, Chief Financial Officer, commented today:

"Deploying cash from our balance sheet to buy back the 2026 Notes demonstrates our confidence in the business and our ongoing cash flow generation. Through this transaction we are reducing gross debt by $114.8 million and we will be saving $28.9 million on coupon payments. Together with the $100 million annual repayment of 2026 Notes in May and the purchase of $166.5 million of 2025 Notes in June this brings our total debt reduction this year to $381.3 million and marks the next step in our objective to be a low-debt business by 2025."

[badger36] 29/11/2023 17:08

Really painful how small volume can skew the market cap

[xxnjr] 29/11/2023 15:27

I used to think the same on Ivory Coast bootycall but now presume their gas will come from here

Believe there was some talk of potentially reversing the West African Gas Pipeline but maybe that's a bit of a long shot?

[bootycall] 29/11/2023 14:10

“Gas will only ever be sold into Ghana Local Market as Ghana lacks LNG gas export facility.”

@xxnjr You are correct to reflect on the status quo but I would not rule out the simple addition of 30kms of new pipe to link in to some very interesting additional markets. The Ivory Coast and arms length commercial contracts spring to mind.
I believe Tullow does not need particularly favourable pricing for the gas to make a good deal as the value in a Ten development is primarily in the condensate. Booty



DYOR

[xxnjr] 29/11/2023 11:15

Didn't read that. It's long and I'm going out. BBC can't forecast even a few days ahead! Not sure if anybody knows long term forecast. AIUI weather set up is El Nino + Positive Indian Ocean Dipole which according to metoffice tends to favour milder than normal 4Q's followed by colder than normal 1Q's so there's a reasonable chance of a heavy gas draw down in norther hemisphere in the new year and higher gas pricing.

Gas will only ever be sold into Ghana Local Market as Ghana lacks LNG gas export facility.

[mcsean2164] 29/11/2023 11:05

Looks like a warm winter in Europe but still it's a shame we aren't able to sell gas into the UK market.... AFAIK, haven't looked at gas for a while.

[xxnjr] 29/11/2023 08:44

Panoro seem to be doing very well from the EG/Gabon assets we sold them. Paying down debt and divi's for shareholders. Reservoir performance in Dussafu Gabon looks good and they have a new discovery recently meaning they could potentially get to about 40K bopd gross (eventually) which (if it happened) would trigger contingent payments at some point. However they are having some electrical issues with their high tech Baker Hughes ESP's at the moment. ESP's need pulling by wireline, to find out whats going on, meaning production uplift has moved about 6 months to the right.

In EG, Ceiba+Okume has already produced 500 mmbo gross to date and apparently there's a huge potential resource left to produce (a lot more than currently booked). Shame we sold it to them!

[xxnjr] 29/11/2023 08:37

Hello SS, Yeah I think PFC have been guilty of chasing contract volume at the expense of margins in the past. Off another 15% this am! Let's hope Saudi can reach a production agreement as otherwise market looks slightly over supplied. Presume the gas agreement extension will be extended again. Worth $4m/month.

[subsurface] 28/11/2023 20:38

A company with a chequered history if you read back XX
POO on the up at the moment.,and Ghana Gas agreement extension expires 30th November 2023

[xxnjr] 28/11/2023 17:26

I know it's off topic but Petrofac is down a further 15.7% today. Now 26.5p.

[xxnjr] 28/11/2023 10:38

Indeed!

Just as a matter of interest the new 'O&M' contract with Petrofac has been instrumental in keeping Jubilee OPEX costs under control since July 2022, at a time of high cost inflation.



Petrofac are also our DECOM provider in Mauritania.

[mccracken227] 27/11/2023 22:37

xxnjr is posting as a reply to blatant ramper Blackhorse

[hubshank] 27/11/2023 22:18

Why not post of the appropriate board? This is the TLW. Having an opinion of the upward or downward movement would be interesting, or even if your really desperate to share, your trades but seems fairly strange to post something of no relevance. Curious as to why?

[xxnjr] 27/11/2023 18:05

8/9 "Switched to PFC" share price was 77p

10/10 "PFC looks good as a energy investment" share price was 72p

21/11 "Added PFC today" share price was 37P

22/11 "Money moving to PFC" share price was 36p

27/11 "money moved to PFC" share price now 32p

Thanks for posting blackhorse23. Glad I stayed in TLW and didn't "follow the money" to PFC but good luck with that one.

[subsurface] 27/11/2023 11:24

23 Nov 2023 | The 187th Meeting of the OPEC Conference, the 51st Meeting of the Joint Ministerial Monitoring Committee (JMMC) and the 36th OPEC and non-OPEC Ministerial Meeting (ONOMM) will convene virtually on Thursday, 30 November 2023.

[pacsltd] 27/11/2023 11:14

7.1% south now :)

[alfiex] 27/11/2023 10:56

And down 6% up to now LoL

[frankmcalorum] 27/11/2023 09:02

Blackhorse23... and why would that be of interest to people on a Tullow chat forum? You may as well tell us what you had for breakfast because that would be of no interest either!

[blackhorse23] 27/11/2023 08:21

money moved to PFC

[zingaro] 26/11/2023 09:07

Yes xxjnr. And, I imagine he would know what's going on in Africa.

[xxnjr] 25/11/2023 23:35

Sam bought an extra 0.2%. Now 16.8%.

[bootycall] 23/11/2023 12:11

Tullow into FTSE250 ! …again. Welcome Index Trackers.

[badger36] 22/11/2023 15:49

That alone deserves the door

[xxnjr] 22/11/2023 14:25

According to Upstream today

"Chevron is preparing the ground to drill up to 10 exploration and appraisal wells in a highly promising block in Namibia’s exciting Orange basin, directly north of TotalEnergies’ multibillion-barrel Venus discovery.

The US supermajor farmed in to Block 2813AB last year, shortly after Tullow Oil exited and Venus was discovered, eventually acquiring all of the interest held by Australian junior Harmattan Energy and part of the stake held by local player Trago Energy."

Remember it well. Total Energies were drilling the worlds largest oil exploration prospect to be drilled that year. Well spud on 1/12/2021 and a massive discovery, thought to be the largest single offshore oil discovery this century, was announced 85 days after spud. Mid-way through the drilling of that well, Tullow inexplicably exited the highly promising block immediately to the north of Total's block. Chevron jumped in, have shot and processed 3D seismic and are now permitting up to 10 wells. Not one of Rahul's most sensible decisions! TLW gave up 56% for nothing. I assume the 56% reverted back to our former minnow partners who quickly concluded a sale with Chevron.

In the meantime the company have been unable to farm out stuff they didn't voluntarily give up like Guyana, Kenya, Argentina etc.

More here

"The gossip suggests Chevron paid $100 million for a stake.

Before the deal, Harmattan Energy had a 37.06% stake in the Orange Basin licence, while Trago Energy had 52.94% and Namcor 10%. Harmattan is the operator.

Harmattan increased its stake in the block from 14% to 37.06% in February this year."

That was after Tullow as operator exited for zero $$$.

We could have/should have sold our 56% to Chevron for c.$50m but didn't. Despite that our CEO received a bonus award of £717K last year.