Tullow Oil - Negotiations with Convertible bondholders continue - oil price levels provides some comfort

All,

Please find our unchanged analysis here.

Tullow released their Annual Report this morning, with nothing major jumping out.  Some of the euphoria of oil price rises has evaporated with oil price stabilising in the $60-$65/bbl range.  Against this background, discussions still continue between the Company and the Convertible holders. 

We still expect the Company to propose an Amend and Extend option to the Convertible and 2022 bondholders with perhaps a springing maturity to just in front of the 2025 bondholders if the 2025 aren’t refinanced in due course.  There remains the option for a partial paydown, but think the Company’s priority is using these funds for new well drilling.

Tomás

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