focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
Got my Q and A's a little long:
answers by Robert Hellwig:
Q: on which date the CNE share holders will have to vote on the approval of the merger?
A: We are targeting completion of the transaction by year-end 2022, a specific date for the shareholder vote has not been set yet.
Q: if CNE share holders vote negative on the merger will the merger still go forward as planned by the boards of both Tullow and CNE?
A: The transaction requires the approval of at least 75% of Capricorn shareholders to go ahead
Q: when can we expect the final approval of Kenya plans?
A: We are unable to guide on the timing of this
Q: will the current gas finds be commercial for Tullow?
A: Associated gas from Jubilee and non-associated gas from the TEN fields has the potential to be a significant value driver for Tullow and for Ghana. We are currently negotiating Gas Sales Agreements for associated natural gas as well as discussing development concepts for non-associated gas with the Government of Ghana
answers by Robert Hellwig:
Q: on which date the CNE share holders will have to vote on the approval of the merger?
A: We are targeting completion of the transaction by year-end 2022, a specific date for the shareholder vote has not been set yet.
Q: if CNE share holders vote negative on the merger will the merger still go forward as planned by the boards of both Tullow and CNE?
A: The transaction requires the approval of at least 75% of Capricorn shareholders to go ahead
Q: when can we expect the final approval of Kenya plans? We are unable to guide on the timing of this
will the current gas finds be commercial for Tullow?
A: Associated gas from Jubilee and non-associated gas from the TEN fields has the potential to be a significant value driver for Tullow and for Ghana. We are currently negotiating Gas Sales Agreements for associated natural gas as well as discussing development concepts for non-associated gas with the Government of Ghana
Some big RNS’s coming within a month I hope: Kenya, gyana. Further, probably an excellent H1, hopefully some further merger news (how certain is it? More drillings in existing fields in Africa, gas commercialization.
Tbh I think rahul made only good decisions since his joining of tullow. Uganda, is argued many times but at the time was necessary and the payments are much better than most realize I suspect. Hedging in 2020 was excellent. Later not so, still not too bad since we realized a 86p/b with poo at 100p/band poo has been higher since. Communication could be better (although in last update video I did think he seemed very positive, relaxed almost).
Topped up today. Not sure about the certainty of the merger. Think CNE is the lucky one although tlw has a good deal too
.
Expecting a fair rise next week and beyond.
Gla
the merger is a good thing. people will come to see it and love it.
besides that there will be a great H1 results. soon a KENYA rns and maybe drilling results from. more drillings in existing fields.
keep your eye on the ball people.
gla
hi BR, i think Rahul does have an incentive in his contract. specifics i don't know but something with a substantial package he is allowed to by after x years against the sp when he started. so if SP rises that would be a big incentive.
I don’t give a sh#t about them buying a few shares personally as long as they work on creating value for the company. This talk about personal shares is symbolic and nothing fundamentally doing anything for tullow. Pleasant watching. Rahul was very clear about the plan. Also mentioned (explained) the joining of swinney from enquest with his extensive experience in m@a. Makes more sense now now we know about merger with CNE.
I was pleased anyway. Great link. Tnx
" Also, if this supposed game changing RNS landed before the merger - would the 3.8068 ************** still be good value for tlw and the shareholders ?"
it might be, all depending IF a farm down still needed at all after the merger, or if so, the terms would be more favourable to TLW/CNE. agree that it will probably only come after completion of the merger.
hi wokinpark, agree. we want the same. however if you have a look little further in the future this merger will be very beneficial to CNE SH too.
- TLW currently has 65000 b/day already.
- Gas we already deliver but will be become commercial this year (TLW agreed to deliver a fixed amount for free which now almost has been reached).
- new drillings in existing fields will increase the current 65000 b/d.
- then there is the agreement where we will get get payment from uganda sale (2.5% (net of tax) if the average annual Brent price is greater than US$70 per barrel. i believe this will be 100k bpd so significant.
- kenya rns on the official go ahead (aprox 120 k bpd added)
- currently there is a drill going on led by Repsol in Gyana (next to where Exxon had several succesfull drills last year) in a block where TLWis a partner.
tbh TLW could do very well on its own but the merger makes sense. CNE can provide gas experience to TLW, speed up the growth in bpd, lower costs )debt costs and overhead ). CNE gets a big increase immediately in daily output (with out risk and costs of drilling and needing to build infrastructure (which takes years). not sure about farm down consequences for kenya due to this merger (still needed and if so percentages will no be more favourable), also not sure about current hedging contracts.
all the best to you.
https://www.ogv.energy/news-item/tullow-oil-capricorn-energy-reach-agreement-on-merger