Tullow Oil floats over 80 million shares to raise money for Ghana, Uganda projects

Tullow Oil, the largest stakeholder in Ghana’s Jubilee oil field, which is the largest oil field to be discovered in West Africa in the last 10 to 15 years has announced the placing of 80,431,796 new ordinary shares to raise funds to finance its Ghana and Uganda projects.

In a press statement copied to ghanabusinessnews.com Wednesday January 27, 2010, Tullow says the shares represent approximately 9.99 of the oil explorer’s existing issued ordinary share capital with both new and existing institutional investors.

Meanwhile, This is London website reports that Tullow Oil today raised about £1 billion to fund expansion in Uganda where it hopes to gain government support for a major acquisition.

Tullow says in a statement emailed to ghanabusinessnews.com that it has invested approximately £690 million in development, appraisal and exploration activities during 2009.

Based on the current estimates and work programmes, capital expenditure for 2010 is forecast to be £990 million. Approximately 40% of this investment will be allocated to exploration and appraisal and the remainder to development and production activities. Tullow’s activities in Ghana and Uganda will comprise approximately 60% of the anticipated 2010 capital outlay, it said.

By Emmanuel K. Dogbevi