Tullow raises Ghana game

Tullow Oil has bolstered its acreage position in Ghana with a $305mn deal to acquire EO Group, including its entire interests off the West African country

The cash-and-shares transaction will increase Tullow’s interest in the West Cape Three Points licence by 3.5 per cent to 26.4 per cent and give it an additional 1.75 per cent in the Jubilee oilfield to lift its operating stake to 36.5 per cent.

Tullow chief executive Aidan Heavey said the acquisition “demonstrates Tullow's long-term commitment to Ghana and our belief in its significant remaining potential”.

The company intends to issue 10.1mn shares to cover about $216mn of the purchase price, with the remainder to be paid in cash.

The effective date of the transaction, which remains subject to customary approvals, is 1 December 2010.

Tullow brought online Jubilee as Ghana’s sole producing field in December last year and is targeting production of 120,000 bpd by August.

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