Tullow - comment

We are not dismissing this morning’s press release from Tullow re: the signing of an exploration license in Côte d’Ivoire. But it isn’t going to be significant to Tullow’s performance in the next couple of years. Tullow already hold an exploration license for CI - 528, in Côte d’Ivoire, 90% Tullow: PetroCi 10%, which is the same ownership as this new license, CI - 803. The exploration area is in the Tano Basin, an area which is similar to the TEN and Jubilee fields in Ghana. In the original license, CI - 528, Tullow are currently exploring, and a number of drill sites are being identified with an expectation and commitment that an exploration well will be drilled in FY24 (august). Note: across the Group exploration CAPEX is c. $45m, which is spread across Gabon, Côte d’Ivoire and Ghana. Conclusion: This is an equity story, and not going to impact Tullow debt performance in the medium term. Exploration CAPEX might creep up a little on the back of this new license, but it will be a rounding error, single-digit millions in the next two years.