Tullow Oil has made its first discovery in its Orinduik license offshore Guyana. Tullow Oil plc (Group) announces that a judgment in the English Commercial Court case brought against its wholly owned subsidiary. Tullow Oil plc (Tullow) is pleased to announce the appointment of Dorothy Thompson as independent non-executive Director. Company exceeding pre-drill forecasts and paving the way for more exploration wells in the near future. Tullow Oil plc announces that it intends to offer $650 million in aggregate principal amount. Company is pleased to announce that it has completed the refinancing of US$2.5 billion of Reserves Based Lending.
Company is pleased to announce that it has acquired 90% stakes in four onshore blocks in Cote d’Ivoire. Company also pleased to announced that it had agreed to farm-down 21.57% of its 33.33% interests. Commercial focus has underpinned the reset of our exploration portfolio. The proposed Convertible Bond Offering will further diversify Tullow Oil’s sources of funding. Tullow Oil plc and its lending banks have completed the routine six-monthly Reserve Based Lend (RBL) redetermination process. It is an excellent start to drilling campaign in the highly prolific Guyana oil province. It is anticipated Dorothy will succeed Aidan Heavey.
“This substantial and high value oil discovery in Guyana is an outcome of the significant technical”, said Paul McDade, Tullow Oil Chief Executive Officer.
It look forward to drilling both the Joe and Carapa prospects in our 2019 drilling campaign. The Hon. Mr Justice Teare has ruled that Tullow was not entitled to terminate its West Leo rig contract. The Notes, whose net proceeds will be used together with cash on hand to redeem in full the Company’s senior notes due 2020. The material follow-up exploration potential in both the Orinduik and Kanuku licenses. The proceeds will be used for general corporate purposes. The available debt capacity remains unchanged at US$3.7 billion. The Jethro-1 exploration well was drilled by the Stena Forth drillship to a Total Depth of 4,400m meters.
Dorothy (57) brings extensive experience to Tullow having served for 12 years as Chief Executive Officer of Drax Group plc. It will be the general obligations of the Company and guaranteed by certain of the Company’s subsidiaries. The US$2.5 billion of credit facilities are split between a commercial bank facility of US$2.4 billion. CNOOC Uganda Limited (CNOOC) has notified Tullow that it has exercised its pre-emption rights under the joint operating agreement. Evaluation of logging data confirms that Jethro-1 is the first discovery on the Orinduik license. Tullow, Total and CNOOC to acquire 50% of the interests being transferred.
The Bonds are issued at par and will have a coupon of 6.625% per annum payable semi-annually. This demonstrates the continued support of Tullow’s lending banks during this period of low oil prices. It comprises high quality oil bearing sandstone reservoirs of Lower Tertiary age. Dorothy managed InterGen’s European power business, was head of project finance at PowerGen. The fully committed facilities are revolving with a three-year grace period. Tullow will now work with Total and CNOOC to conclude definitive sale documentation. The well encountered 55m of net oil pay which supports a recoverable oil resource estimate.
The fees amount to approximately $254 million. The interest rate, offering price and other terms will be determined at the time of pricing of the offering. The transaction was formally launched in early October. Tullow believes that this acreage will complement the Group’s existing exploration portfolio. Completion of the farm-down is subject to certain conditions, including the approval of the Government of Uganda. The Bonds will be convertible into fully paid ordinary shares of the Company the Ordinary Shares. Tullow will now evaluate the data from the Jethro discovery and determine appropriate appraisal activity.
Tullow will cease to be an operator in Uganda. The initial conversion price has been set at $3.52, a premium of 30% above the volume weighted. The Group has cash and undrawn credit facilities amounting to US$2.1 billion of headroom with no near term maturities. The discovery significantly de-risks other Tertiary age prospects on the Orinduik license. Dorothy is also currently a non-executive Director of the Court of the Bank of England. Tullow has also decided to reduce the commitments of its Revolving Corporate Credit Facility to US$600 million. Tullow intends to initiate work immediately on these licences to allow a full tensor gradiometry (FTG) survey.
It includes the shallower Upper Tertiary Joe prospect which will commence drilling later this month. The person responsible for arranging the release of the announcement on behalf of Tullow. This early survey data will be used to assess the potential of the licenses. It will retain a presence in-country to manage its non-operated position. The Ordinary Shares underlying the Bonds represent 9.35% of the Company’s outstanding ordinary share capital. The successful outcome builds on the US$450 million capital. Tullow has total headroom including free cash of US$0.9 billion with no material near-term debt maturities.
“The refinancing of our RBL credit facility was a key objective for 2017”, LES WOOD, Chief Financial Officer said.
The non-operated Carapa 1 well will be drilled, later this year. Tullow expects to be required to pay the fees within the next 14 days. The announcement does not constitute an offer to sell or the solicitation of an offer. The high level of demand has enabled to strengthen liquidity position and diversify the sources of capital. It increase and covenant renegotiation achieved in March 2015. The adjacent Kanuku license to test the Cretaceous oil play. Tullow being liable for a net amount of approximately $140 million. The Notes and the related guarantees have not been, and will not be, registered under the U.S. Securities Act of 1933.
Tullow Guyana B.V. is the operator of the Orinduik block with a 60% stake. It compare with the provision of $128 million made in the 2017 Annual Report and Accounts. The announcement may include projections and other “forward-looking” statements. It is intended that an application will be made for the Bonds to be listed on a recognised stock exchange. Tullow will now examine its options, including seeking leave to appeal the judgment. The forward-looking statements and information contained in this announcement are made as of the date hereof. Total E&P Guyana B.V holds 25% with the remaining 15% being held by Eco(Atlantic) Guyana Inc.