Member Info for Slift

Banned again? Lol

No drill in Orinduik in 2022.
Expect Tullow farm down and a drill (as per commitments) in 2023 though.

"accelerating efforts towards the phase down of unabated coal power and phase out of inefficient fossil fuel subsidies"

Sounds like business as usual for India, China, Africa, etc.

$150m effective as at 1st April 2021.

Consideration will be approx. $125m currently for the 7.7% stake (on an overall basis as the liftings are taken into account).

What's also to note is that this transaction is SIGNIFICANTLY positive for the balance sheet.
Once complete, expect full year results to post a profit on an overall basis with net assets finally turning positive.

Not only is it good for balance sheet, a positive net assets on the accounting basis provides Tullow with more financial leverage for future endeavours and other financial matters.

TEN: 14.3k bopd
Jubilee: 27.6k bopd

Non-Op - estimated to be 15.8-17.1k bopd

Q3 production total: 57.7k - 59k bopd

Or as TLW would likely call it "production till end of Q3": 60 - 60.5k bopd

Ofc, all my estimations.

@"What have I not accounted for?"

OPEX... CAPEX... Decom...finance costs (mainly leases).. etc.

I'd have said scope 2 emissions, but wouldn't really go through your head would it?

Scrodingerscat,

Yes very true, but the CAPEX is self funded by the asset. The decommissioning costs are also accounted for in the free cash flow. So not really negative at all.

This asset is also value accretive at $55/barrel (in line with Tullows' forward plan.
If anything the requirements to aim towards carbon neutral is going to be more of a hit with more stake. But hopefully again be funded by FCF from the asset acquired.

As a side note, Petro SA have also pre-empted their rights.

Excellent news.

No impact to shareholders as funded by "existing resources".

Lol, you wouldn't have TLW shares now if Tullow had kept Uganda.
Company would have dissolved and you would have lost everything.

So you sure should be glad that Tullow managed to get that sale.

You're not very bright are you Jubilee?

It's CURRENT PRICE to CURRENT EARNINGS ratio.
It's 187 (it's not years either btw) because investors believe future earnings will be a lot higher than current earnings.
Or in other words, growth potential.

People sure are quick to jump on fossil fuels..

Yet no-one bats an eye for fireworks (climate activists inclusive).

Weird world? Or just dumb people?

Jeez.
You're happy about the Uganda sale for once.

Seekingalpha,

My understanding is that the transaction is already closed as of 13th October and Tullow and other JV partners have 30 days from that date to pre-empt their rights.

Tullow and other JV partners have most likely been made aware of the talks/transaction prior to the announcement.

12 days remain before pre-emption rights period ends.

I'd be very very surprised if Tullow doesn't take up the additional Ghana stake via pre-emption rights.
Especially as the entire forward/business plan is pinned on Ghana development.

Less than 2 weeks remain before decision.

Supercooper,

$300m for the asset alone.
50% CAPEX costs @ $1.7b adds this to the value of the asset.

So all in all, the asset is valued at $2b for the 40% developed stake Tullow will retain following development.

Considering that Kosmos paid $550m for DEVELOPED assets of 104m 2p reserves in Ghana..
If you believe that the Kenya asset is worth more, go ahead.

Tman75,

First off, it's not quite 50%.
The Government of Kenya has back-in rights which will see Tullow's stake reduce to c. 40% following development of this field.

Secondly, the cost price of $22/barrels is more complicated. It's not as simple as that.
The $22/barrel is calculated over the production life of the field and does not take into account license.
If FID is reached this year, there will be approx. 19 years production on the current license.

Basically, majority of the "profit" will only be seen in c. 10 years time as majority of the early years will be used to pay off CAPEX cost.

You can continue to believe that Kenya has a IRR of 272%, but it doesn't.

Kenya for the 50% stake, even with the redeveloped plan is worth at best $300-350m.

No idea where everyone is getting $1b valuations from.
The field is undeveloped, and requires significant CAPEX to develop.

Your logic is hilarious.