Tullow Oil PLC on Wednesday gave an upbeat update, noting an improving financial position as it launched tender offers for debt notes.
The oil and gas explorer and producer said a $400 million debt facility with Glencore Energy UK Ltd, part of Glencore PLC, which it reported on Monday, was a ‘material step in our refinancing strategy and demonstrates Tullow’s continued ability to access long-term capital’.
It added that the Jubilee South East project offshore Ghana was on-stream, with two Jubilee water injection wells brought on-stream in October, and its portfolio generated increased accelerating free cash flow.
Tullow said it is on track to deliver around $800 million in free cash flow between 2023 and 2025, at $80 per barrel.
It raised its annual free cash flow guidance to around $150 million from around $100 million, which it credited to increased sales volumes in Gabon and deferral of some capital expenditure.
Meanwhile, Tullow launched a tender offer for a portion of its senior secured notes due 2026. It is offering to buy back up to $100.0 million of its $1.60 billion 10.25% senior secured notes at a minimum purchase price of 89.125%.
Further, the company announced the start of a tender offer for up to $300.0 million of 7.0% senior notes due 2025 that have an outstanding amount of $633.5 million. The early tender deadline for both offers is November 29.
Tullow Oil shares were up 5.5% to 35.34 pence each on Wednesday morning in London.
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