Tullow - comment

Tullow completed the acquisition of the pre-emption of the sale of Occidental stake in the Ghanian fields. The completion price was $118m, which will be easily funded by cash on balance sheet. It increases Tullow’s annual production by c. 5,000 boepd (4,000 on an annualised basis).

The addition of the 5,000 boepd is all unhedged, increasing Tullow’s exposure to unhedged upside to 45% of production, but with 65% hedged on the downside, in line with the terms of the bonds. Note: the acquired production is excluded from the hedging requirement.

The completion was expected and another step on Tullow’s journey. As we continue to highlight, it is all about new wells and production going forward.