Africa-focused Tullow Oil said on Sept. 14 it would stick to the current form of its plan all-share merger plan with Capricorn Energy, shrugging off criticism from some Capricorn investors who say the deal undervalues the company.
Capricorn’s board supports the merger, but the group also said last week it was exploring alternative deals after unnamed parties expressed interest.
Capricorn shareholders Madison Avenue, Legal & General IM and Schroders, as well as some other investors, have come out against the merger plan.
The deal requires approval from at least 75% of Capricorn shareholders, a threshold that might be in jeopardy if hedge fund investors who have been critical of the deal turn their derivative investments into direct shareholdings.
Tullow on Sept. 14 reiterated its guidance for full-year free cash flow of $200 million at an oil price of $95/bbl after recording $205 million negative cash flow in the first half after an acquisition and an arbitration payment.
Tullow, which had a market cap of around $835 million as of Sept. 13, had net debt of around $2.3 billion at the end of the first half. It forecasts its net debt to core profit ratio, or gearing, to fall to 1.5 times by year-end.
Recommended Reading
SilverBow Resources Adds New Webb County Position for $50 Million
2022-09-16 - The new position in the dry gas Dorado play doubles SilverBow’s current Webb County acreage in South Texas, which now totals 15,000 acres with an estimated drilling inventory exceeding 200 gross locations.
Russia to Take Sakhalin-1 Project Under its Control, Sources Say
2022-07-07 - Russian President Vladimir Putin signed a decree last week seizing full control of the Sakhalin-2 gas and oil project, a move that could force out Shell and Japanese investors.
Subsea Firm Proves Acoustic Hydrate Detection in Deep Water
2022-07-18 - Now that a ROV-propelled acoustic sensor has proven the ability to locate blockage in a deepwater pipeline, TSC Subsea is looking into other use cases, such as detecting the buildup of hydrates and wax deposits before a plug form.
Midstream Capacity Key to Surging Shale Production
2022-07-17 - Water in and out as well as hydrocarbon transport sustain new completion techniques for U.S. shale producers.
Guyana Races Against the Clock to Bank its Oil Bonanza
2022-07-18 - An Exxon Mobil-led consortium plans to pump 1.2 MMbbl/d of oil from its holdings in Guyana in 2027, which would give the country more output than its neighbor Venezuela and the highest output per capita in the world.