Updates

Tullow Oil - Rights issue de-risks business

May 2017

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Tullow Oil has launched a rights issue at 130p to raise US$750m (£607m), with shareholders entitled to 25 new shares for every 49 existing.While Tullow has cut costs and new fields would in time pay down debts, the key benefits of de-gearing will be more attractive refinancing terms, less pressure to sell / farm down its best assets, the ability to exploit further infill drilling opportunities and exploration / appraisal work at its plum Jubilee and TEN fields in Ghana (35% interest: potentially 750m barrels), Kenya (40% interest: 1bn barrels) and Uganda (10%: 1.7bn barrels) which now has French giant, Total and Chinese Government owned CNOOC as partners. Opportunistic acquisitions are also back on the agenda.The short- ...

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