Tullow is exercising its pre-emption rights and will increase its stake in the Jubilee field (from 35.5% to 38.9%) and in the TEN fields (from 47.2% to 54.8%) for c. $150m, implying a price of c. $7/bbl of reserves. Tullow’s production will increase by c. 5.14kbpd (to c. 66kbpd). All in all, a good transaction for Tullow. We estimate that oil at $80/bbl would bring in $65-70m of free cash flow (for FY22).
12 Nov 2021
Ghana expansion
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Ghana expansion
Tullow Oil plc (TLW:LON) | 35.1 0.2 1.4% | Mkt Cap: 510.6m
- Published:
12 Nov 2021 -
Author:
Kevin VO -
Pages:
2
Tullow is exercising its pre-emption rights and will increase its stake in the Jubilee field (from 35.5% to 38.9%) and in the TEN fields (from 47.2% to 54.8%) for c. $150m, implying a price of c. $7/bbl of reserves. Tullow’s production will increase by c. 5.14kbpd (to c. 66kbpd). All in all, a good transaction for Tullow. We estimate that oil at $80/bbl would bring in $65-70m of free cash flow (for FY22).