Issue of Equity

RNS Number : 2090H

Tullow Oil PLC

31 October 2008

 



Tullow Oil PLC

31 October 2008

Tullow Oil plc ('Tullow' or 'the Company')

Tullow announces that on 29 October 2008, it agreed to issue 6,352,114 ordinary shares of 10p each in the share capital of the Company (the 'Shares') to African Petroleum Investment Limited '(API') in settlement of a royalty obligation of its subsidiary, Tullow Gabon Limited ('TGL'), to pay API US$ 43 million. 

In 2004, Tullow completed its $500 million corporate acquisition of Energy Africa Limited, whose assets included a 50% share in a joint venture company which owned interests in certain producing oil fields and exploration assets in Gabon. API owned the remaining 50% share in the joint venture company which it sold to Tullow at the same time for $70 million. API retained its pre-existing rights to receive certain royalty payments based upon the net cash flows from certain producing fields and the obligation now settled represents the currently accrued and future net present value of all such rights.

Application will be made to the UK Listing Authority and the Irish Stock Exchange for the Shares to be admitted to the official list of the UK Listing Authority and the official list of the Irish Stock Exchange and application will be made to the London Stock Exchange and the Irish Stock Exchange for the Shares to be admitted to trading on their respective main markets. 

For further information contact:

Chris Perry - Tullow Oil plc        0208 996 1000

Graham Martin - Tullow Oil plc     0208 996 1000

 

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