Tullow's decision to exit the Orinduik licence is in line with its strategy to focus on its high return production assets in
Transaction summary:
Contingent consideration is payable to TOHBV, which is linked to a series of potential future milestones and triggered as follows:
Royalty payments on future production - 1.75% of the 60% working interest entitlement revenue net of capital expenditure and lifting costs.
Transaction and payment of the Initial Consideration outlined above is subject to certain market-standard conditions precedent, including Government and JV approvals.
Proceeds from this transaction will be put towards general corporate purposes.
Completion is expected to occur in the second half of 2023.
'This transaction is in line with our strategy to optimise our portfolio through opportunities to unlock value from our emerging basin licences, whilst focusing our capital expenditure on our high return producing assets and growth opportunities around existing infrastructure.'
Contact:
Tel: (+44) 20 3781 9244
TOHBV has signed a sale and purchase agreement (the 'SPA') with Eco for the transfer of its entire interest in the Orinduik licence via the corporate sale of TGBV to Eco in exchange for a mix of cash and a series of contingent payments based on future milestones.
Pursuant to the SPA, TOHBV has agreed to transfer to Eco for cash consideration TOHBV's entire shareholding in TGBV. TGBV holds an undivided 60% participating interest and Operatorship in and under (i) a petroleum agreement between the Minister responsible for Petroleum representing the Government of the
Additional cash consideration may be received by TOHBV from Eco and any successors, in the form of contingent payments, which will be payable on upstream revenues in the form of royalty payments will become due and payable to TOHBV once upstream revenues from the Orinduik licence commences.
Subject to the satisfaction of certain market standard conditions precedent, including Government and JV approvals, the Transaction is expected to complete in the second half of 2023.
Additional information
The Transaction is classified as a Class 2 transaction as defined by Chapter 10 of the Listing Rules and is therefore not conditional on the approval of Tullow's shareholders.
On
Notes to Editors
Tullow is an independent oil & gas, exploration and production group which is quoted on the
No statement in this announcement is intended as a profit forecast or profit estimate.
This announcement includes statements that are, or may deemed to be, 'forward-looking statements' within the meaning of the securities laws of certain jurisdictions. These forward-looking statements can be identified by the use of forward-looking terminology, such as 'anticipate', 'expect', 'suggests', 'plan', 'believe', 'intend', 'estimates', 'targets', 'projects', 'should', 'could', 'would', 'may', 'will', 'forecast' and other similar expressions or, in each case, their negative or other variations or comparable terminology. These forward looking statements include all matters that are not historical facts. They appear in a number of places throughout this announcement and include statements regarding Tullow's or Tullow's directors' plans, estimates, intentions, beliefs or current expectations concerning, among other things, Tullow's exploration and development plans and the timing and cost thereof, future production levels and volumes, future operating cost levels, the grant and timing of future governmental or commercial or joint venture partner approvals or consents, the timing, outcome and potential scope of liability in any litigation, proceedings or other disputes and Tullow's results of operations, financial condition, prospects, growth, strategies and the industry in which the Group operates more generally.
Forward-looking statements are not guarantees of future performance and the Group's actual results of operations, financial condition and the development of the industry in which it operates, may differ materially from those made in or suggested by the forward-looking statements contained in this announcement. In addition, even if the Group's results of operations, financial condition and the development of the industry in which it operates, are consistent with the forward-looking statements contained in this announcement, those results or developments may not be indicative of results or developments in subsequent periods.
Any forward-looking statements that are made in this announcement speak only as at the date of such statement and, other than as may be required by the
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