Redetermination Agreed
TULLOW OIL PLC
REDETERMINATION Update - ReserveS Based Lending facility debt capacity agreed
26 February 2021 - Tullow Oil plc (Tullow) is pleased to provide an update on the redetermination of its Reserves Based Lending facility ("RBL").
Over the past few weeks, Tullow has been reviewing its business plan and operating strategy with lending banks within its RBL and their financial advisers, as well as with the financial advisers of the 2021 convertible bond holders and the 2022 bond holders. This plan is expected to generate material cash flow, which will enable reduction of the Group's current debt levels and creates the foundation to address near-term debt maturities.
Completion of the Uganda transaction in 2020, the recent announcement of asset sales to Panoro Energy, exploration portfolio rationalisation and material cost savings, will enable the Group to deliver in excess of US$1 billion of self-help over two years. This, along with strong operational performance in Ghana and higher commodity prices, is providing positive impetus to constructive discussions with creditors with regards to Tullow's debt refinancing options. The Group is confident that a mutually satisfactory agreement for all stakeholders can be reached in the first half of the year.
As part of this process, Tullow and its technical banks have agreed a new debt capacity amount under the RBL facility of c. US$1.7 billion; this remains subject to formal approval by a majority of lending banks and, once approved, will be effective from 26 February. The debt capacity reduction from c. US$1.8 billion based on the September 2020 redetermination reflects the effects of six months of production and the removal of the Equatorial Guinea and Dussafu assets as a result of their sale to Panoro Energy. Based on the new debt capacity amount, Tullow will have liquidity headroom of free cash and available debt facilities of c. US$0.9 billion. The next RBL redetermination is scheduled to take place in September 2021.
Tullow will provide a further update at its Full Year results on 10 March 2021.
CONTACTS |
|
|
Tullow Oil plc (London) (+44 20 3249 9000) George Cazenove (Media) Matthew Evans and Chris Perry (Investors) |
Murrays (Dublin) (+353 1 498 0300) Pat Walsh Joe Heron |
Notes to editors
Tullow is an independent oil & gas, exploration and production group, quoted on the London, Irish and Ghanaian stock exchanges (symbol: TLW). The Group has interests in over 70 exploration and production licences across 14 countries.
For further information, please refer to our website at www.tullowoil.com
Follow Tullow on:
Twitter: www.twitter.com/TullowOilplc
YouTube: www.youtube.com/TullowOilplc
Facebook: www.facebook.com/TullowOilplc
LinkedIn: www.linkedin.com/company/Tullow-Oil
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
Latest directors dealings
- 43 minutes ago Trekor Metals Limited
- 43 minutes ago ECR Minerals
- 43 minutes ago Zotefoams
- 14 hours ago Luceco
- 14 hours ago Helios Towers