REG - Tullow Oil PLC - Heads of terms agreed for sale of Gabon assets

Tullow OilAnnouncement

24/03/2025 15:15

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RNS Number : 9281B  Tullow Oil PLC  24 March 2025

Tullow Oil plc

Tullow agrees binding heads of terms for $300 million net of tax sale of Gabon
assets to Gabon Oil Company

 

24 March 2025 - Tullow Oil plc (Tullow) is pleased to announce that it has
signed a binding heads of terms agreement with Gabon Oil Company for the sale
of Tullow Oil Gabon SA, which holds 100% of Tullow's working interests in
Gabon for cash consideration of $300 million net of tax (the "Transaction").

This disposal of a portfolio of non-core assets is accretive to both equity
and leverage and accelerates the deleveraging process as referred to in our
January Trading Statement and Operational Update.

This Transaction will constitute a significant transaction for the purposes of
UKLR 7 of the UK Listing Rules (as came into effect on 29 July 2024). Further
announcements will be made in due course upon full form transaction
documentation being entered into by the parties.

 

Transaction highlights

·      Total cash consideration payable of $300 million net of tax.

·      Corporate sale of Tullow's entire Gabonese portfolio of assets,
representing c.10 kbopd of 2025 production guidance and c.36 million barrels
of 2P reserves (independently audited at year end 2024).

·      Effective date for the Transaction is 1 January 2025.

·      On a pro forma basis the Transaction will reduce Tullow's net
debt to $1.15 billion, as of the effective date.

·      Entering into the full sale and purchase agreement (SPA) is
targeted for the second quarter of 2025.

·      Conditions precedent for the completion of the Transaction
include all necessary approvals (including from government ministries), CEMAC
Competition Commission approval and Tullow's processing of the 2024 dividend
in compliance with Gabonese requirements.

·      Completion of the Transaction and receipt of funds is expected
around the middle of year.

 

Richard Miller, Chief Financial Officer and Interim Chief Executive Officer of
Tullow, commented:

"This value accretive transaction with Gabon Oil Company (GOC) aligns with our
strategic priorities to materially accelerate deleveraging and is an important
step as we progress our refinancing plans this year. Together with GOC, we are
focussed on finalising the full suite of documentation and driving the
transaction to swift completion.

"Our strengthened balance sheet, repayment of our 2025 senior notes and
imminent return to drilling at Jubilee, combined with production optimisation
activities in the first quarter of 2025, demonstrates our continued delivery
against our business objectives and positions the Company strongly for the
year ahead."

 

 CONTACTS
 Tullow Investor Relations                    Camarco (Media)

                                            (+44 20 3757 4980)
 ir@tullowoil.com (mailto:ir@tullowoil.com)

                                            Billy Clegg
 Matthew Evans

                                            Georgia Edmonds
 Rob Hayward

                                              Rebecca Waterworth

 

This announcement contains inside information for the purposes of Article 7 of
Regulation 2014/596/EU which is part of domestic UK law pursuant to the Market
Abuse (Amendment) (EU Exit) Regulations (SI 2019/310) ("UK MAR"). Upon the
publication of this announcement, this inside information (as defined in UK
MAR) is now considered to be in the public domain. This announcement is being
made on behalf of Tullow by Adam Holland, Company Secretary.

 

Notes to editors

Tullow is an independent energy company that is building a better future
through responsible oil and gas development in Africa. The Company's
operations are focused on its West-African producing assets in Ghana, Gabon
and Côte d'Ivoire, alongside a material discovered resource base in Kenya.
Tullow is committed to becoming Net Zero on its Scope 1 and 2 emissions by
2030 and has a Shared Prosperity strategy that delivers lasting socio-economic
benefits for its host nations. The Group is quoted on the London and Ghanaian
stock exchanges (symbol: TLW). For further information, please refer to:
www.tullowoil.com (http://www.tullowoil.com/) .

Follow Tullow on:

LinkedIn: www.linkedin.com/company/Tullow-Oil
(http://www.linkedin.com/company/Tullow-Oil)

X: www.X.com/TullowOilplc (http://www.X.com/TullowOilplc)

 

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