Tullow reached agreement with Hardman Resources on the terms of a recommended scheme of arrangement to acquire all of the issued and to be issued ordinary shares in Hardman Resources.
· The terms of the Scheme values the entire issued and to be issued share capital of Hardman Resources at A$1.47 billion (approximately £581 million / US$1.1 billion).
· The terms include a share alternative, subject to a maximum of 65 million New Tullow Shares being issued.
· The Scheme is expected to complete at the latest in early January 2007.
· The cash consideration under the offer will be funded by new debt facilities provided by Bank of Scotland Corporate.
The Board of Tullow believes that the acquisition of Hardman Resources significantly enhances Tullow’s portfolio and delivers further key opportunities and strategic positions. In particular, the Acquisition:
· increases production by 6,000 boepd and 2P commercial and contingent reserves by 30 per cent.;
· delivers a material full cycle business in Mauritania;
· establishes operational control in the Albertine basin, Uganda;
· doubles Tullow’s prospective acreage position;
· adds 16 exploration wells to the 2006/07 campaign; and
· builds on Tullow’s successful acquisition track record.