Tullow plans public share sale in Ghana

Marion Dakers
TULLOW OIL yesterday laid out plans to float 4m shares in Ghana, where last year it was instrumental in producing the country’s first oil.

Tullow said it hopes to demonstrate its commitment to Ghana by allowing the public to buy the shares, which would be worth £53.9m at yesterday’s London price of £13.47.

The firm will price the offering on 13 June, and is expected to list the shares towards the end of the month.

“We would like everyone in Ghana to have the opportunity to invest in the future performance of Tullow, especially as we embark upon further exciting exploration and development activities in Ghana and across our global portfolio,” said chief executive Aidan Heavey.

Ghanaian bank IC Securities is acting as lead broker on the offering, with Standard Chartered and Agricultural Development Bank also selling shares through their branches in the country.

Tullow has interests in two exploration blocks off the Ghanaian shore, and operates the Jubilee field that lies across the blocks.

The president of Ghana attended the first oil celebration in December, and production is expected to hit 120,000 barrels per day next month.

Last week, Tullow splashed out £186m to buy EO Group, a minority partner in the Jubilee field that was struggling to meet its operating costs.

The company will join a string of commodities firms on the Ghana Stock Exchange (see table below), including branches of Total, AngloGold Ashanti and state-run Ghana Oil Company.

Tullow shares closed up 1.4 per cent at 1,347p yesterday.