Tullow's shares offer at GH¢31

Accra, June 13, GNA - Shares of Tullow Oil plc went on sale to the Ghanaian investing public on Monday at an offer price of GH¢31 per share.

Tullow, which is listed on the London and Irish Stock Exchanges, is making available four million of its shares in a public offer to be listed on the Ghanaian bourse later in July.

The offer price is discounted at 2.57 per cent to Tullow's closing price on the London Stock Exchange last Friday.

Speaking at an Investors Conference, Mr Paul McDade, Chief Operating Officer, said prospective investors could apply for the offer shares between June 13 and July 4, this year and was optimistic that the offer would be oversubscribed.

"There are strong indications, during the process leading to today that there's a high investor interest -- we are hoping that it'd go well and likely to be oversubscribed," he said.

Mr McDade said the offer of the shares on the Ghana Stock Exchange would give investors the opportunity to share in the future performance of Tullow's operations in the country and in addition, demonstration of the company's long-term commitment to Ghana.

He said the expected high interest in the shares signified the confidence of Ghanaian investors in Tullow's commitment in the Jubilee Field, where the company is leading in exploration and production activities.

"We have shown enough commitment that we are in Ghana for the long haul with brighter prospects," he said.

Analysts expected the shares to be oversubscribed, saying the proposed volume of shares on offer was modest and likely to be oversubscribed. Mr Derrick Mensah of Accra-based SIC Financial Service Limited said the volume of shares on offer was small and could easily be taken by institutional investors, thereby pushing up the offer price.

"Our expectation is that in the short-term, the offer price could go up after the initial listing as a result of the expected high demand for it," Mr Mensah added.

Tullow is lead operator in the Jubilee Field which began commercial Production in mid-December last year and expected production to ramp up to 120,000 barrels-per-day (bpd) by August this year, from 77,000 bpd currently.