Now published :-
http://www.heritageoilplc.com/resource/iszlurilit527sym5i371yi9.pdf
Haven't given this a proper look yet but Tullow's pre-emption rights appear to be exactly as thought in respect of identical terms expressed on the earlier thread.
In the event that Tullow validly exercises such pre-emption right in
accordance with the procedure prescribed below in Section 5 of this Part I, the Deferred Consideration provisions
contained in the disposal agreement entered into with Tullow will be on the same terms and conditions as in the
Disposal Agreement. This would include the right of Tullow to offer to the Heritage Group an interest in an oil
producing field of sufficient value in satisfaction of the Deferred Consideration, subject to the terms of the
Disposal Agreement.
I suppose they could pre-empt on the basis of offering Chinguetti if the need arises ;-)
As to the tax incentive detail relating to the deferred $150m consideration, this looks incredulous :-
The payment of the full amount of the Deferred Consideration is conditional on the relevant authorities within
the Ugandan Government granting or agreeing to grant to Eni, within a period of two years from the date of
Completion, full exemption or relief from direct and indirect taxation for all upstream, midstream and
downstream activities of the Disposed Assets.
ALL activities?? AIUI from Hardman's Shareholder Circular, tax rate on net profits ranges from 25% to 45%. How can any of this be negotiable? Is this a dream? Am I going mad?
Haven't looked at the CPR cos that's going to say whatever the company wants it to say, since they're paying. However, it's of no consequence really as any interested counterbidders will be well armed with all available data. If the ENI deal goes through without any further ado, or Tullow pre-empts, then that is the true market price and everyone should be satisfied.
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