Tullow to acquire EO Group's Ghanaian interests

On Thursday 26th May, Tullow announced that it was going to acquire EO Group's interests in offshore Ghana, for a combined share and cash consideration of $305 million. The acquisition will increase the company's interest in the West Cape Three Points licence by 3.5 per cent to 26.4 per cent and the company's interest in the Jubilee Oil field by 1.75 per cent to 36.5 per cent.

The date of the transaction is 1st December 2010. The agreement is conditional on the receipt of various approvals and assurances, including from the Government of Ghana. Upon completion, an application will be made to the UK Listing Authority and the Irish Stock Exchange for the shares to be admitted to the official list bodies.

Speaking about the deal, Tullow's Chief Executive Aidan Heavey said: “This acquisition represents an excellent opportunity to extend our interest in these high-quality assets in Ghana. Following our exploration and production successes over the last few years, which culminated in First Oil in late 2010, this purchase further demonstrates Tullow's long-term commitment to Ghana and our belief in its significant remaining potential.”

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