Exercise of Pre-emption Right


 

TIDMTLW 
 
RNS Number : 6796F 
Tullow Oil PLC 
18 January 2010 
 

News Release 
 
 
 
 
 
 
Tullow exercises pre-emption right on proposed sale of Heritage's Ugandan assets 
 
 
17 January 2010 - Tullow Oil plc ("Tullow") announces that on Sunday, 17 January 
2010, its subsidiary, Tullow Uganda Limited ("Tullow Uganda"), exercised its 
right of pre-emption in respect of the proposed sale by Heritage Oil & Gas 
Limited ("HOGL") of its 50% interest in Blocks 1 and 3A in Uganda. 
 
 
Pursuant to its right of pre-emption, Tullow Uganda will enter into a Sale and 
Purchase Agreement ("SPA") with HOGL, a subsidiary of Heritage Oil plc 
("Heritage"). On 18 December 2009, Heritage announced that the consideration for 
the transaction comprises US$1.35 billion cash and a further contingent, 
deferred consideration of either US$150 million cash or an interest in a 
mutually agreed producing oil field independently valued at a similar amount. A 
syndicate of Tullows core relationship banks has provided the banking 
facilities required to enable Tullow to exercise its right of pre-emption. 
 
 
Completion of the SPA is subject to certain conditions which include approval by 
Heritage shareholders at a meeting scheduled for 3pm (GMT) on 25 January 2010 
and receipt of necessary consents from the Ugandan Government. 
 
 
In parallel with exercising its pre-emption right, Tullow has been running a 
transparent farmout process which has attracted a significant amount of interest 
from major international and national oil companies. The process is now well 
advanced and potential partners are supportive of the Group's decision to 
pre-empt. 
 
 
Commenting today, Aidan Heavey, Chief Executive, said: 
"Over the last six years, Tullow and Heritage have invested over US$700 million 
in the Lake Albert Rift basin in drilling 27 wells to prove up over 700 million 
barrels of oil and identify over 1.5 billion barrels of potential yet to be 
explored. 
 
 
"Tullow is committed to retaining a material stake in Uganda and to continue to 
invest for the long term. As we enter the development phase we are working 
closely with the Ugandan government to introduce a mutually beneficial partner 
with downstream expertise who is aligned with this long term approach. 
 
 
"The pre-emption of the Heritage transaction, and completion of Tullow's 
farmdown process, is an excellent opportunity to deliver an accelerated 
basin-wide development plan best suited to Government needs and to optimise 
value for all stakeholders." 
 
 
Conference Call 
Aidan Heavey (CEO) will host an analyst conference call at 8.30am on Monday 18 
January. Please dial in 10 minutes before the start time. A replay facility will 
be available from 12pm. The details for accessing the live call and the replay 
are as follows: 
 
 
+--------------+------------------+---------------+------------------+ 
|           Live Event            |         Replay Facility          | 
|                                 |        available from 12         | 
|                                 |                pm                | 
+---------------------------------+----------------------------------+ 
|      UK      |  020 7806 1967   |      UK       |  020 7111 1244   | 
|Participants  |                  |Participants   |                  | 
+--------------+------------------+---------------+------------------+ 
|    Irish     |    1 486 0916    |    Irish      |    1 486 0902    | 
|Participants  |                  |Participants   |                  | 
+--------------+------------------+---------------+------------------+ 
|    Other     |+44 20 7806 1967  |    Other      |+44 20 7111 1244  | 
|Participants  |                  | Participants  |                  | 
+--------------+------------------+---------------+------------------+ 
|    Access    |     9348513      |    Access     |    9348513#      | 
|    Code      |                  |     Code      |                  | 
+--------------+------------------+---------------+------------------+ 
 
 
 
 
 
FOR FURTHER INFORMATION CONTACT: 
+-------------------------+-------------------------+-------------------------+ 
| Tullow Oil plc          | Citigate Dewe Rogerson  | Murray Consultants      | 
| (+44 20 8996 1000)      | (+44 207 638 9571)      | (+353 1 498 0300)       | 
| Aidan Heavey            | Martin Jackson          | Joe Murray              | 
| Ian Springett           | George Cazenove         | Ed Micheau              | 
| Chris Perry             |                         |                         | 
+-------------------------+-------------------------+-------------------------+ 
 
 
Notes to Editors 
Tullow is a leading independent oil & gas, exploration and production group, 
quoted on the London and Irish Stock Exchanges (symbol: TLW) and is a 
constituent of the FTSE 100 Index. The Group has interests in over 85 
exploration and production licences across 23 countries and focuses on four core 
areas: Africa, Europe, South Asia and South America. 
 
 
In Africa, Tullow has production in Gabon, Côte 
d'Ivoire, Mauritania, Congo (Brazzaville) and Equatorial Guinea and two large 
appraisal and development programmes in Ghana and Uganda. Tullow also has 
exploration interests in Gabon, Côte d'Ivoire, Liberia, Sierra 
Leone, Mauritania, Senegal, Congo 
(DRC), Tanzania, Madagascar, Namibia and Angola. 
 
 
Tullow's European interests are primarily focused on gas in the UK Southern 
North Sea where it has significant interests in the Caister-Murdoch System and 
the Thames area. The company also has interests offshore the Netherlands and 
Portugal. 
 
 
In South Asia, Tullow has exploration and production in Pakistan and Bangladesh. 
In South America, Tullow has exploration interests in Guyana, French Guiana and 
Suriname. 
 
 
For further information please refer to our website at www.tullowoil.com. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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