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(Alliance News) - Tullow Oil PLC on Wednesday gave an upbeat update, noting an improving financial position as it launched tender offers for debt notes.
The oil and gas explorer and producer said a USD400 million debt facility with Glencore Energy UK Ltd, part of Glencore PLC, which it reported on Monday, was a "material step in our refinancing strategy and demonstrates Tullow's continued ability to access long-term capital".
It added that the Jubilee South East project offshore Ghana was on-stream, with two Jubilee water injection wells brought on-stream in October, and its portfolio generated increased accelerating free cash flow.
Tullow said it is on track to deliver around USD800 million in free cash flow between 2023 and 2025, at USD80 per barrel.
It raised its annual free cash flow guidance to around USD150 million from around USD100 million, which it credited to increased sales volumes in Gabon and deferral of some capital expenditure.
Meanwhile, Tullow launched a tender offer for a portion of its senior secured notes due 2026. It is offering to buy back up to USD100.0 million of its USD1.60 billion 10.25% senior secured notes at a minimum purchase price of 89.125%.
Further, the company announced the start of a tender offer for up to USD300.0 million of 7.0% senior notes due 2025 that have an outstanding amount of USD633.5 million. The early tender deadline for both offers is November 29.
Tullow Oil shares were up 5.5% to 35.34 pence each on Wednesday morning in London.
By Tom Budszus, Alliance News reporter
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