Business Irish

Thursday 30 March 2017

Tullow Oil looking for $300m via convertible bond issue

Tullow Oil facility in Uganda
Tullow Oil facility in Uganda
Gavin McLoughlin

Gavin McLoughlin

Irish oil and gas explorer Tullow Oil is looking to raise $300m via issuing convertible bonds.

The money would be used for "for general corporate purposes and to fund capital investment in the Group's assets in West and East Africa," Tullow told the market this morning.

The bonds carry a coupon of 6.625pc, Tullow said, and convertible into shares in the company.

Chief financial officer Ian Springett said the issue would "further diversify Tullow Oil’s sources of funding and give the company access to a new investor base."

The company has had a difficult run of late, with technical difficulties at the Jubilee field in Ghana leading to a shutdown in production. It saw its share price battered by the sharp decline in oil prices.

However, it said last week it expects first oil at what the company calls a "transformational project" known as TEN, also in Ghana. within weeks.

Tullow shares were down 15pc in London as of 2:15pm.

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