Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
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 $400 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 $800 million in free cash flow between 2023 and 2025, at $80 per barrel.
It raised its annual free cash flow guidance to around $150 million from around $100 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 $100.0 million of its $1.60 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 $300.0 million of 7.0% senior notes due 2025 that have an outstanding amount of $633.5 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.
Copyright 2023 Alliance News Ltd. All Rights Reserved.