The 2025 notes gained 3.5 cents on the dollar to 99.1 cents, according to data compiled by Bloomberg. Shares fell 1.6% in London at 9:56 a.m., adding to a drop of about 40% over the past 12 months.
Tullow borrowed billions of dollars during its free-spending days as a wildcatter searching for new oil basins. Chief Executive Officer Rahul Dhir refocused the business on its legacy assets in West Africa and improved its finances, reducing net debt to $1.45 billion since taking over in 2020.
A group representing holders of Tullow’s $1.39 billion bonds due 2026 is working with lawyers at Cleary Gottlieb Steen & Hamilton in a bid to push the company to come up with a comprehensive solution, said people familiar with the matter, asking not to be named because they aren’t authorized to speak publicly. The 2026 notes fell 1.9 cents on the dollar to 91.8 cents on Thursday, the data shows.
A representative for Cleary Gottlieb didn’t immediately respond to a request for comment.
Asset Sales
Tullow also said it will consider disposing of non-core assets to help bring its debt below $1 billion. Sales would further reduce the scope of Tullow’s operations, after the company previously curbed exploration activity.
“Disposals will only be considered where the level of proceeds would be accretive to both equity and leverage,” the company said in the trading statement.
Tullow is facing changes at its helm, with the board looking for a new CEO after Dhir announced in December he would step down from the role.
The producer expects working interest production to average 50,000 to 55,000 barrels of oil equivalent per day in 2025. The firm also aim to identify future well locations at its Ghana fields.
