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Tullow targets Norway with $372mln deal as it exits North Sea gas

Tullow Oil has made the surprise decision to exit the UK and Dutch Southern North Sea gas basin to focus on Norway following the acquisition of Spring Energy for US$372mln. It signalled this morning it is ready to begin the process of disposing of its non-core assets.

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Tullow Oil (LON:TLW) this morning made the surprise decision to exit the UK and Dutch Southern North Sea gas basin to focus on Norway following the acquisition of Spring Energy for US$372mln.

It signalled this morning it is ready to begin the process of disposing of its non-core assets.

Chief executive Aiden Heavey said: "Active portfolio management is a key part of Tullow's exploration-led strategy.

“These transactions are part of an ongoing process of carefully refocusing our business and ensuring efficient allocation of capital by monetising non-core assets and re-investing the proceeds in high potential oil exploration."

Spring holds 28 offshore licences across Norway's continental shelf in the North Norwegian and Barents Seas covering just over 18,000 square kilometres.

It has a track record of exploration success, having made six commercial discoveries from 12 wells drilled since 2008.

In 2013-14, it plans to drill up to 16 exploration wells and operate three of them.

Tullow reckons Spring's exploration portfolio contains in excess of 230 million barrels of oil equivalent of risked prospective resources while the company has existing reserves and resources of 24 million barrels.


Quick facts: Tullow Oil PLC

Price: 42.4 GBX

LSE:TLW
Market: LSE
Market Cap: £596.99 m
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