Tullow Oil PLC Redetermination Agreed (4249Q)
February 26 2021 - 2:00AM
UK Regulatory
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RNS Number : 4249Q
Tullow Oil PLC
26 February 2021
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 Murrays
(London) (Dublin)
(+44 20 3249 9000) (+353 1 498 0300)
George Cazenove (Media) Pat Walsh
Matthew Evans and Chris Perry (Investors) 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
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END
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