Tullow Conference Call: Aug-24-2011Yesterday, Tullow gave an update on their progress in the East Africa Basin. Please see the attached slides:
https://www.tullowoil.com/files/pdf/Tullow2011Halfyear_pres.pdf
I was on the call and only heard upbeat comments from Tullow as it pertains to their outlook in Kenya and Ethiopia (where Africa Oil has a minority stake). Specifically, Tullow stated they are continuing to identify / map out structures that appear to be analogues to their Lake Albert play in Uganda.
Note, from an Exploration & Appraisal standpoint - Tullow has been on fire with over 43/45 well successful in the Lake Albert rift basin. So, Tullow appears to know what they are doing with the drill bit in the East African margin.
It may be important to review a bit of history with respect to Tullow & Lake Albert.. Recall, Tullow had originally partnered up with a small company called Heritage to explore and prove up the Lake Albert basin in Uganda. After exploration and appraisal results in Lake Albert were successful,
Tullow bought out Heritage's stake in blocks 1 and 3A for US $1.45B.
Later, Tullow sold a 33% to CNOOC and 33% to Total for US $2.9B.
Question: Will Tullow (or others) consider buying out Africa Oil if exploration results in Kenya & Ethiopia are similar to Lake Albert? What would such a transaction be valued at?? Note, Africa Oil's acreage position in Kenya & Ethiopia is 10x bigger than Tullow's acreage position in Lake Albert!!!