Tullow Oil has announced a $305m (€216.5m) conditional share and cash agreement to acquire the interests of EO Group Ltd, consisting of its entire interests offshore Ghana.
This acquisition will increase Tullow's interest in the West Cape Three Points licence offshore Ghana by 3.5% to 26.4% and increase its interest in the Jubilee Oil field, which Tullow Operates, by 1.75% to 36.5%.
'This purchase further demonstrates Tullow's long-term commitment to Ghana and our belief in its significant remaining potential,' said Tullow chief executive, Aidan Heavey.
Tullow will issue 10,137,196 ordinary shares to EO to satisfy approximately $216m of the deal.
The balance, which will include certain working capital adjustments, will be paid in cash.
The effective date of the transaction is 1 December 2010.
The agreement is conditional on the receipt of various consents, approvals and assurances, including from the Government of Ghana.
