REG - Tullow Oil PLC - AGM Trading Update

Tullow OilAnnouncement

Thu 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250522:nRSV7589Ja&default-theme=true

RNS Number : 7589J  Tullow Oil PLC  22 May 2025

Tullow Oil plc

AGM Trading Update

 

22 May 2025 - Tullow Oil plc (Tullow) issues the following statement in
advance of the Group's Annual General Meeting (AGM). The meeting will take
place at Tullow Oil plc, Building 9, Chiswick Park, London, W4 5XT at 11:00
BST today. We are also enabling shareholders to listen to the AGM as well as
participate remotely. Instructions for joining the audio cast can be found at
the end of this statement or within the Notice of Meeting
(https://www.tullowoil.com/application/files/5517/4463/2776/250328_NOM_final_vers.pdf)
.

The information contained herein has not been audited and may be subject to
further review and amendment.

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

"The strengthening of our balance sheet continues to be the key priority for
the team and there is renewed energy within the business following a number of
recent key milestones achieved, despite the challenging oil price environment.
Our strategy to divest certain non-core assets to accelerate our deleveraging
trajectory is progressing well, with the sale of Gabon and Kenya expected to
provide near term cash proceeds of $380 million.

"We continue to advance our plans to refinance our capital structure during
2025 which, coupled with our cost optimisation programme to realise c.$10
million annual cash net G&A savings and a continued disciplined approach
to capital allocation, will lay a solid foundation for future value creation."

Operational update

·      Group working interest production in the first quarter of 2025
was 52.9 kboepd, including 7.1 kboepd of gas production, within the expected
range for the period and affected by a two-week planned maintenance shutdown
conducted safely and on budget on the Jubilee field.

·      2025 Group working interest production guidance, prior to Gabon
transaction completion, remains 50 to 55 kboepd, including c.6 kboepd of gas.

·      Next Ghana drilling campaign has commenced with the first well, a
Jubilee producer, expected onstream in the third quarter of 2025.

·      Analysis of the 4D seismic survey, which was completed in first
quarter of 2025, is underway and will support future well locations to drive
reserves growth.

Financial update

·      Strong progress made on accelerating our deleveraging process
through non-core asset disposals:

o  Sale and purchase agreement (SPA) signed for the sale of Tullow's entire
Gabonese portfolio of assets for a total cash consideration of $300 million
net of tax. Approval by the Gabonese Ministry of Hydrocarbons has already been
received and subject to the remaining conditions precedent, completion of the
transaction and receipt of funds is expected around the middle of the year.

o  Heads of terms signed for the sale of Tullow's entire working interests in
Kenya, for a minimum cash consideration of $120 million, with additional
royalty payments subject to certain conditions and an option to back-in for
30% of potential future development phases at no cost; on track to sign SPA in
the near-term. Completion and receipt of first two payments totalling $80
million are expected during 2025.

·      Net debt at 31 March was $1.6 billion, an increase from year end
due to the timing of liftings.

·      Hedge portfolio protects c.60% of forecast 2025 sales volumes at
weighted average price of $59/bbl, increasing to c.70% on completion of Gabon
portfolio sale.

·      Optimisation of cost base continues, with expected c.$10 million
savings identified, reducing annual cash net G&A to c.$40 million, before
additional material savings expected as a result of Gabon and Kenya
transactions.

·      Full year free cash flow guidance is now $400 million at $65/bbl,
inclusive of both $380 million of disposal proceeds and c.$50 million of
overdue gas payments in Ghana from 2024, resulting in expected year-end net
debt of c.$1.1 billion.

·      Tullow has extended its Revolving Credit Facility (RCF) to the
end of October 2025, with all lenders participating in the extension,
demonstrating their ongoing support. The RCF, which is currently drawn to
manage near-term working capital, has been reduced to $150 million, in line
with working capital requirements in a low oil price environment. The facility
will be repaid and cancelled in full on completion of the Gabon disposal when
it will no longer be required for liquidity management.

Governance update

·      The process to find a new CEO is progressing and an update will
be provided in due course.

 

AGM audio cast

11:00am BST

We are enabling shareholders to listen to a live audio cast of the AGM, as
well as participate remotely.

In order to participate at the meeting, you will need to visit
www.meetnow.global/TULLAGM2025 (http://www.meetnow.global/TULLAGM2025) on your
device operating a compatible browser using the latest version of Chrome,
Firefox, Edge or Safari. Please note that Internet Explorer is not supported.
It is highly recommended that you check your system capabilities in advance of
the meeting day.

If you are a shareholder, you can use your unique Shareholder Reference Number
and PIN as displayed on your Form of Proxy/Attendance Card. If you are an
appointed proxy or a corporate representative, you will have had to be
provided with a unique invite code to enter the meeting and exercise your
rights. These credentials will be issued one working day prior to the meeting,
conditional on evidence of your proxy appointment or corporate representative
appointment having been received and accepted. If you have not been provided
with your meeting access credentials, please ensure you contact Computershare
on the morning of the meeting, but no later than one hour before the start of
the meeting.

Access to the meeting via www.meetnow.global/TULLAGM2025
(http://www.meetnow.global/TULLAGM2025) will be available from 10.00am. During
the meeting, you must ensure you are connected to the internet at all times in
order to vote when the Chair commences polling on Resolutions being put to the
meeting. Therefore, it is your responsibility to ensure connectivity for the
duration of the meeting.

Technical issues

If you experience any technical issues with the site, you may either call our
Registrar on the telephone number provided on the site or once you have
entered the meeting, you can raise your question using the chat function. If
you have technical issues prior to the start of the meeting, you should
contact our Registrar on the shareholder helpline.

Process

The process of asking questions and accessing the AGM audio casting will be
further explained within the application and located on the information page.

 

 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

 

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 core producing assets in Ghana and 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)

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No 596/2014 (as it forms part of UK domestic
law by virtue of the European Union (Withdrawal) Act 2018 as amended by virtue
of the Market Abuse (Amendment) (EU Exit) Regulations 2019). Upon publication
of this announcement, this inside information will be considered to be in the
public domain. The person responsible for arranging the release of this
announcement on behalf of Tullow is Adam Holland, Company Secretary.

This announcement is not intended to, and does not, constitute or form part of
any offer, invitation or the solicitation of an offer to purchase, subscribe
for or otherwise acquire, or to sell, transfer or otherwise dispose of, any
securities or the solicitation of any vote or approval in any jurisdiction,
whether pursuant to this announcement or otherwise.

The release, publication or distribution of this announcement in, into or from
jurisdictions outside the United Kingdom may be restricted by law and
therefore persons into whose possession this announcement comes should inform
themselves about, and observe, such restrictions. Any failure to comply with
the restrictions may constitute a violation of the securities law of any such
jurisdiction.

 

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  TSTSEESIEEISEFI