Completes partial sale of UK Schooner and Ketch

RNS Number : 9437T

Tullow Oil PLC

10 October 2014

 



News Release

Tullow Oil completes partial sale of UK Schooner and Ketch gas assets

10 October 2014 - Tullow Oil plc ("Tullow" or "the Group") announces today that its subsidiary Tullow Oil SK Limited has completed the sale of 53.1% of its Schooner unit interest and 60% of its Ketch asset in the UK Southern North Sea to Faroe Petroleum (U.K.) Limited ("Faroe"). Operatorship of Schooner and Ketch will now transfer to Faroe.

The Group continues to market its remaining Southern North Sea gas assets in the UK. In the Netherlands an agreement to sell operated and non-operated L12/L15 block interests and non-operated Q4 and Q5 block interests to AU Energy B.V., a subsidiary of Mercuria Energy Group Limited, for a consideration of $81.1 million, was announced in September. In July, the Group also announced the sale of its interests in the Brage field in Norway to Wintershall for a cash consideration of 45million NOK ($7.5m).

These transactions, the sale of Tullow's gas assets in Bangladesh, and the agreement to sell the Pakistan business, is aligned with Group's strategy of active portfolio management and monetisation of assets.

Schooner and Ketch Licences and production

	Tullow 1H 2014 net average WI production	Tullow pre-farm down equity	Tullow post farm down equity	2014 production impact
Schooner Unit	2.4 kboepd	93.1%	40%	0.3 kboepd
Ketch	3.9 kboepd	100%	40%	0.5 kboepd

A summary of Tullow's announcement of the sale on 30 April 2014 is set out below.

FOR FURTHER INFORMATION CONTACT:

Tullow Oil plc (London) ([phone]) Chris Perry (Investor Relations) James Arnold (Investor Relations) George Cazenove (Media Relations)

Citigate Dewe Rogerson (London) ([phone]) Martin Jackson Shabnam Bashir

Murray Consultants (Dublin) ([phone]) Pat Walsh Joe Heron

Summary

30 April 2014 - Tullow Oil SK Limited entered into an agreement to sell 53.1% of its Schooner unit interest (currently 93.1%) and 60% of its Ketch asset (currently 100%) in the UK Southern North Sea to Faroe Petroleum (U.K.) Limited. The total consideration is the equivalent of US$75.6 million plus a royalty on future Schooner developments, subject to the terms of the sale and purchase agreement. Of the US$75.6 million total consideration, US$58.8 million will be paid on completion of the sale, prior to adjustments for working capital from the effective date of 1 January 2014, with the balance payable on the achievement of cumulative production milestones.

Notes to Editors

Tullow Oil plc

Tullow is a leading independent oil & gas, exploration and production group, quoted on the London, Irish and Ghanaian stock exchanges (symbol: TLW) and is a constituent of the FTSE 100 Index. The Group has interests in over 140 exploration and production licences across 21 countries which are managed as three regional business units: West & North Africa, South & East Africa and Europe, South America and Asia.

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