Tullow Oil PLC (LSE:TLW) has confirmed it has secured approval from the Government of Gabon for the extension of several of its Gabon licences to 2046.
It increases the value of Tullow’s resource base, adding some 5 million barrels of reserves into inventory, the company said in a statement.
“This activity is in line with the group's strategy to focus on its high return production assets in Africa and unlock value through optimisation of its non-operated portfolio,” Tullow said.
“The extensions reflect the future potential of the reserves and resources across the Gabonese assets and the longevity of the Tchatamba facilities as a core hub for Tullow.”
London stockbroker Peel Hunt today repeated a ‘buy’ rating and a 75p price target for Tullow.
“For context, at YE22 Tullow's Gabon fields held net 2P reserves of 32MMbbl, which we valued at US$332m NPV10, or 19p/sh. We will update our model shortly for this positive release,” Peel Hunt analyst Matt Cooper said in a note.
In London, Tullow shares were largely unmoved, changing hands at 34.86p in Wednesday’s early deals, valuing the company at just under £510 million.