In regards to a second wave, the world is in a far better position than we were back in March. There wouldn't be a world lockdown again and they're a lot closer to a vaccine now as well.
Oil will have periods of volatility going forward but will head higher over time. The reduction in world production over the last 6 months and now having Opec+ focused on keeping on top of the situation should be enough to keep a lid on any large drops in the price.
A Rights issue is definitely the wrong thing to do a this point in time for TLW. They have a business plan that needs to play out in asset sales, tightening the business, etc.
It's only been 3 years since the last RI which took the share count to over 1.4 Billion, so in doing a RI now would mean having over 3 Billion shares for very little financial gain. Brent would only have to rise $10 for Tullow to make the same amount in 12 months, so for the size of the dilution, it's not worth it.
You have to see what results from the ongoing work of sorting out the Ghana production problems / reducing Capex / Uganda sale / future farmdowns / debt refinancing / New driling results.
I was expecting news about Uganda by now.
I would expect a more forward-thinking and confident forecast from Rahul, he's been silent since his appointment and he'll know this is his big opportunity to take control and lay out his plans.
So much for this!
The Independent understands the delay to approve the transaction has been caused by what Robert Kasande, the permanent secretary in the Ministry of Energy and Mineral Development referred to as a “multi-institutional” review of the deal.
Kasande told The Independent on Aug.6 that he is positive that the government will approve the transaction within a “maximum of two weeks.”
I've said this before, but how can Tullow still have the majority of the same board still in place after what has happened to the company?
You have a board that withheld critical information from the shareholders between the November update to the December update. You have a board that has not taken any kind of pay cut during this crisis. You have a board that agrees on a 100% pay rise for Dorothy to step up and try to fix the mess she helped make. You have a board that are taking million out of Tullow with little regard to the shareholders.
I was hoping when Sammy became the largest holder, he would have got these guys under control!
There is no technical reason for this to be going down again today. You have a company that for the best part of a year has been addressing its problems. Covid happened which has obviously had a nightmare effect on the oil market but in a weird way it has made Tullow tighten the business even more than it would have.
You have oil sitting around $46 / Oil stockpiles getting eating away / the world trying to get back to some sort of norm.
Uganda could be completed at any time now.
The share price would have to go up 1000% just to get to last year's prices and 7000% to reach the prices of 8 years ago, so it has been well over punished for all that has happened in the past!
The market will always attack shares of a business that gets itself into trouble, but it's definitely not helping the situation when Tullow's board decided on a strategy from the beginning of all of this to only give information if they legally have to. Yesterday was a good example of this when the details of the new drilling in Suriname was confirmed but still silence from Tullow!
Again news out but not anything from Tullow Oil!!!
Offshore drilling contractor Stena Drilling said Tuesday that oil company Tullow had hired one of its drillships for drilling offshore Suriname.
Tullow Oil has hired the Stena Forth drillship and will use it to drill one well in Block 47, located approximately 260 km north of the coast of Suriname.
The drillship, currently moored in Gibraltar, will mobilize to Suriname in late December 2020 or early January 2021 with a planned campaign start in January or February 2021.
Tullow will use the Stena Forth to drill the Goliathberg-Voltzberg North prospect (GVN-1) Tullow got hold of the Block 47 - a 2,369 sq km deepwater exploration license - in Suriname back in 2010. The company has previously said that the block had the potential to extend the Jubilee play from West Africa across the Atlantic to Suriname.
Back in 2017, Tullow drilled the Araku-1 exploration well in Suriname in Block 54. The well, drilled to a total depth of 2,685 meters using the Noble Bob Douglas drillship, came up dry.
Elsewhere in Suriname, Malaysian oil and gas giant Petronas has recently hired a Maersk Drilling rig to drill one well in Block 52 offshore Suriname later this year.
Most notably, the U.S. oil firm Apache has so far this year announced three discoveries off the South American country's northern coast -Maka Central in January and Sapakara West in April, and Kwaskwasi-1 in July.
Worth noting, the deal with Tullow is Stena Drilling's second rig contract announced on the same day. Earlier on Tuesday, the company said it had secured a 10-well P&A work for its Stena Spey semi-submersible drilling unit in Ireland.
Interestingly, I put in a large sale when it was about 5% up today and it offered me the top price so I tried it a couple of more times increasing the sale both times until the last one would have been a very large sale and again it offered me the full offer?
Not sure what that means if anything but I've not been offered full sale price on any sales this year?
I've been investing in TLW for years, on and off, I reinvested again after the Nov update about the heavy oil info thinking they've brought out all the news they have because legally they have too! But then a couple of weeks later they come out with the massive bazooka of an update that almost finished the company, Which I'm still not sure if that was legal???
So a board that is capable of a move like that is capable of anything.
For all the years of investing, I've never seen anything like that!
And most of the original board members are still there- unbelievable!!!
The market can do whatever it likes with this share when the board sits silently taking their massive packages from TLW!
LES WOOD'S package alone is worth well over a million a year and he's not once bought any shares in the company since the disastrous Dec update absolutely scandalous.
It just can't hold any of its gains.
I keep going to sell some when it's up and then backing out. I'm going to have to bite the bullet and trade my holdings in this at some point because the board doesn't look like they're going to do us any favors with this one!!!