Tullow Oil Proposes $750 Million Rights Issue
17 March 2017 - 6:55PM
Dow Jones News
LONDON--Tullow Oil PLC (TLW.LN) Friday proposed a rights issue
of 466.9 million new shares at 130 pence (158.6 cents) each to
raise $750 million.
"Tullow has taken a number of significant steps since 2014 to
re-set and restructure the business to ensure the Group is well
positioned to meet the challenge of lower oil prices. As a result,
we are now producing positive free cash flow and have begun the
process of reducing our debt," Chief Operating Officer and Chief
Executive Officer-designate Paul McDade said.
"Tullow has a strong set of low cost production, development and
exploration assets in Africa and South America and, by accelerating
the reduction of our gearing through this Rights Issue, we will be
able to focus on growing our business by investing more across our
portfolio and taking advantage of opportunities that industry
conditions present," Mr. McDade said.
The oil and gas explorer said the issue price is a 45% discount
to the closing price of 237.3 pence on Thursday.
Also Friday Tullow said CNOOC Uganda Ltd. (CNOOC) has notified
Tullow that it has exercised its pre-emption rights under the joint
operating agreements between Tullow, Total and CNOOC to acquire 50%
of the interests being transferred to Total on the same terms and
conditions that were agreed between Tullow and Total.
-Write to Razak Musah Baba at razak.baba@wsj.com; Twitter:
@Raztweet
(END) Dow Jones Newswires
March 17, 2017 03:40 ET (07:40 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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