Tullow Oil's (LON: TLW) shares are trading higher after announcing that the sale of its Dussafu Marin permit asset in Gabon to Panoro Energy ASA has now completed.
Early on Wednesday, the London-listed firm received $39 million from Panoro for the Dussafu asset and $5 million relating to the Equatorial Guinea transaction.
The transaction also includes contingent cash payments of up to $24 million, linked to asset performance and oil prices.
The transaction met all of the conditions necessary, including the approval from the Government of Gabon. Tullow said it continues to have a substantial non-operated position in Gabon and is currently planning its future investment in its Gabonese portfolio.
Rahul Dhir, CEO of Tullow Oil, commented: “The completion of this transaction is the final step of our asset sale programme in Uganda, Equatorial Guinea and Gabon.
“These sales have provided over $700 million in liquidity and have helped both lower our cost base and support our comprehensive refinancing. With no significant debt maturities until 2025, Tullow has the financial stability to deliver on its business plan.”
Tullow's share price is currently trading at 60.3p, up 3.47%. It is up almost 104% for the year to date and 14% in the last three months.
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