British oil producer, Tullow Oil announces today July 25, 2011 that it has completed the acquisition of E.O. Group’s stake in Ghana’s Cape Three Points. EO is a Ghanaian oil producer in the Jubilee partners – the number of companies drilling for oil in the largest oil field in Ghana.
In May 2011 Tullow said it had entered into a conditional agreement to acquire the interests of EO “consisting of its entire interests offshore Ghana, for a combined share and cash consideration of $305 million.”
According to Tullow, “all of the conditions to the acquisition were satisfied and the acquisition completed today.”
In a press release issued and copied to ghanabusinessnews.com Thursday May 26, 2011, Tullow said this acquisition will increase its interest in the West Cape Three Points licence offshore Ghana.
Tullow explained that the acquisition will increase its interest 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%.
The company says the number of shares has been determined using an average of the closing share prices and exchange rates for the five business days up to and including May 24, 2011.
Tullow also indicates that the receipt of its shares as part of the consideration gives EO the opportunity to retain an indirect interest in the upside potential of all of its Ghanaian assets.
The effective date of the transaction, Tullow says is December 1, 2010, and that was before commercial production of oil started in Ghana. Commercial production of oil began in Ghana on December 15, 2010.
By Emmanuel K. Dogbevi