Tullow Oil share offer on GSE goes for GH¢3

British oil producer and major stakeholder in Ghana’s Jubilee oil field has announced the price for its share offer on the Ghana Stock Exhange (GSE).

In a press release issued Monday June 13, 2011 and copied to ghanabusinessnews.com, Tullow puts the price per share at GH¢31 per share, adding that the offer prospectus and application forms have been published.

“The offer price represents a 2.57% discount to the closing price of a Tullow share on the London Stock Exchange (LSE) on June 10, 2011,” it says.

According to Tullow, it is expected that admission of the Offer shares to the GSE will take place on July 27, 2011.

The oil producer believes that the offer of its shares on the GSE will give investors the opportunity to share in the future performance of Tullow’s operations in Ghana and more broadly across its global portfolio of assets.

“This listing and share offer further demonstrates Tullow’s long-term commitment to Ghana,” it added.

Tullow announced Tuesday May 31, 2011 that it was planning for a secondary listing of its shares on the GSE and it is offering four million shares in Ghana.

The company first made known its intentions to list on both the Ghana and Uganda Stock Exchanges in January 2011. Tullow also has projects in Uganda’s nascent oil sector. The General Manager of Tullow’s Uganda operations, Brian Glover was quoted by the Telegraph newspaper as saying that after discussions with its shareholders, “the idea was welcomed by all.”

Tullow Oil has increased its stakes in Ghana’s emerging but promising oil sector. Last Thursday May 26, 2011, the company announced that it has entered into a conditional agreement to acquire the interests of EO Group Limited (EO), a Ghanaian owned-oil producer. The shares, Tullow said, consists of EO’s entire interests offshore Ghana, for a combined share and cash consideration of $305 million.

This acquisition, according to Tullow will increase its interest in the West Cape Three Points licence offshore Ghana by 3.5% to 26.4% and increase the Group’s interest in Ghana’s world-class Jubilee oil field, which it operates, by 1.75% to 36.5%.

By Emmanuel K. Dogbevi