REG - Tullow Oil PLC Tullow Oil PLC - FP Tullow Oil PLC - NP - Completion of pre-emption in Ghana

Tullow OilAnnouncement

21/03/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220321:nRSU3594Fa&default-theme=true

RNS Number : 3594F  Tullow Oil PLC  21 March 2022

News Release

 

Tullow completes pre-emption of Deep Water Tano component of Kosmos
Energy/Occidental Petroleum Ghana transaction

 

21 March 2022 - Tullow Oil plc (Tullow) is pleased to announce that it has
completed the pre-emption related to the sale of Occidental Petroleum's
interests in the Jubilee and TEN fields in Ghana to Kosmos Energy. The cash
consideration paid on completion was $118 million reflecting closing
adjustments and was funded from cash on the balance sheet.

 

This transaction takes Tullow's equity interests to 38.9% in the Jubilee field
and to 54.8% in the TEN fields and adds c.5 kbopd of unhedged daily
production. This equates to c.4 kbopd on an annualised basis and increases
2022 Group production guidance to 59-65 kbopd (30-32 kbopd at Jubilee, 13-14
kbopd at TEN and non-op portfolio unchanged at 16-19 kbopd). This additional
equity increases Tullow's 2022 Group capital expenditure forecast by $30
million to $380 million and is expected to generate c.$300 million incremental
free cash flow at $75/bbl between 2022 and 2026.

 

As of 31 December 2021, the transaction increases Tullow's net 2P reserves by
c.21 mmboe (9%) and has an estimated post-tax NPV 10 valuation of $355 million
at $75/bbl.

 

Rahul Dhir, CEO of Tullow Oil plc, commented today:

"I am delighted that this important transaction has completed and I am
grateful for the continued support of the Government of Ghana and, in
particular, the Honourable Minister of Energy whose leadership has been
paramount in getting to completion. This transaction underscores our
confidence in the assets and meets our objectives of value accretion and
deleveraging."

 

FOR FURTHER INFORMATION CONTACT:

 

 Tullow Oil plc                              Camarco

  (+44 20 3249 9000)                          (+44 20 3781 9244)

 Robert Hellwig, Matthew Evans (Investors)   Billy Clegg

 George Cazenove (Media)                     Monique Perks

                                             Rebecca Waterworth

 

Notes to editors

Tullow is an independent oil & gas, exploration and production group which
is quoted on the London, Irish and Ghanaian stock exchanges (symbol: TLW) and
is a constituent of the FTSE250 index. The Group has interests in over 30
exploration and production licences across eight countries. In March 2021,
Tullow committed to becoming Net Zero on its Scope 1 and 2 emissions by 2030.
For further information, please refer to our website at www.tullowoil.com
(http://www.tullowoil.com) .

 

Follow Tullow on:

Twitter: www.twitter.com/TullowOilplc (http://www.twitter.com/TullowOilplc)

YouTube: www.youtube.com/TullowOilplc (http://www.youtube.com/TullowOilplc)

Facebook: www.facebook.com/TullowOilplc (http://www.facebook.com/TullowOilplc)

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

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCGPUAAWUPPPGR