The CEO states Tullow sp is much too low and I bought in on the comments---todays results are excellent and I feel this one is being overlooked on here. check it out bargain hunters-I'd welcome some expert feedback!

StockMarketWire.com
Tullow Oil has proposed a 25-for-49 fully underwritten rights issue to raise about £607m (or, c.$750m) at a discounted 130p a share, as it moves to reduce debt.

Separately, Tullow Oil said it has agreed to a Uganda farm-down that once complete would mean it had ceased to be an operator in that country, but would retain a presence in-country to manage its non-operated position.

Returning to the rights issue, Tullow Oil said it required shareholder approval and would comprise about 466.9m new shares.

"In light of its high level of debt and the resultant lack of financial flexibility, the group intends to accelerate the reduction of its debt towards its gearing policy of less than 2.5x net debt/Adjusted EBITDAX," said Tullow Oil in a statement.

This would be achieved via a combination of net proceeds from the rights issue, improving cash flow from production growth, and value enhancing portfolio management activities, including future asset sales and farm-downs.

The rights issued was at a a discount of about 45.2% to the closing price of 237.3p on March 16 March, and at a discount of about 35.3% to the theoretical ex-rights price of 201.1p per new share calculated by reference to the closing price on the same day.

Meantime, Tullow said it had agreed to farm-down 21.57% of its 33.33% interests in Exploration Areas 1, 1A, 2 and 3A in Uganda to Total E&P Uganda B.V. (Total) for a total consideration of $900m.

CNOOC Uganda Ltd had notified Tullow that it had exercised its pre-emption rights under the joint operating agreements between Tullow, Total and CNOOC to acquire 50% of the interests being transferred to Total on the same terms and conditions that were agreed between Tullow and Total.

Completion of the farm-down was subject to certain conditions, including the approval of the Government of Uganda.

"Once the farm-down has completed, Tullow will cease to be an operator in Uganda but will retain a presence in-country to manage its non-operated position," the company said.

AAARRRGGGHHH!!
very spiteful and sure didn't see that one coming
once the dust settles i wonder what the considered reaction and opinion will be
certainly it will reduce the debt burden very considerably and in one hit rather than in dribs and drabs
with a longer term view, it could prove a very good value buy

assuredly helps that it is underwritten and i would expect that the large institutioinal shareholders were consulted before the event

This is a good move by Tullow to expand and reduce its debts. And we have rights to buy more at 130p a share. Time to pile in, I think.

I imagine it depends on your original entry price. I can see many folks holding at a higher price and using this opportunity to average down.

RBC note today:
"Tullow has been underperforming the oil price and its peers in recent days, and this morning the company announced a 25 for 49 rights issue, priced at 130p, to raise ~£590m (net). The fundraising should accelerate the recovery of Tullow’s balance sheet, but the placing is likely to satisfy investor demand for a stock that sits outside most indices; therefore, without a material pick-up in activity, the share price recovery could be sluggish. With that said, the fundraising is straight out of 1998-2003's oil price collapse recovery playbook, so we need to ask - has Tullow inadvertently put itself in play?
Use of proceeds: With a stronger balance sheet Tullow intends to accelerate the pace of growth over the next three to five years by invest in further infill drilling opportunities in both its operated and non-operated portfolio; undertaking exploration and appraisal around the Jubilee and TEN fields to further develop the high return near field resource base; undertake further exploration and appraisal activity in Kenya to further prove up the resource base; drill high-impact, potentially high return prospects across Tullow's African and South American portfolio; and new ventures.
In play: CNOOC has today preempted the Total deal in Uganda, which demonstrates interest in that asset and we see no reason why similar interest should not be exhibited in Kenya. Ghana has world class assets and Tullow’s refocused exploration potential has promise, and its value is not reflected in the current share price, in our view. The key wrinkle is the border dispute in Ghana that should be resolved in late 2017.
Our view: We were awaiting the 2004 playbook play: Exploration success.

Declared short interest is about 15%, which I suppose isn't surprising.

on the basis that there will be short closing (profit taking) towards the end of biz, i have taken a modest long at 202.4
fingers x'ed

Not currently paying a divi, worth looking at though after this dive.

cynic... 202.4p soon coming up now... you selling?

it really hasn't moved much from that all day
may hold over w/e ...... can certainly afford to

Yeah, I agree, I think it will bounce up soon.

Shares in Tullow Oil gushed higher on Tuesday as Deutsche Bank upped its stance on the stock to 'buy' from 'hold' and lifted the price target to 330p from 270p, saying the current price offers an attractive entry point.
DB noted that Tullow has underperformed its peers by around 20% year-to-date.
"If you've been sitting on the fence, we think the current share price offers an attractive entry level to invest in a material and recapitalised bellwether of the European exploration & production sector.
"Tullow offers geared commodity exposure for investors with a constructive outlook on the oil price, as well as long-term optionality and growth in a deflationary international E&P cost environment (unlike the US unconventional space)."
The oil and gas team of the German bank pointed out the fully underwritten cash call significantly strengthens the balance sheet and means Tullow is now not in the thrall of its lenders.
Deutsche said the rights issue allows Tullow to wrestle back control of its free cash flow from the banks and let its equity story take centre stage.
Last week, Tullow announced plans to launch a £607m rights issue at a 45% discount to its current share price as it looks to shrink its debt burden.
"The $724m net proceeds from the rights issue should now free Tullow from the restraints that may have been imposed by its banking syndicate in a flat commodity oil price environment. We also estimate that Tullow will save circa $75m in fees and interest charges over 2017-18, as well as removing the need to stretch covenant waivers," DB said.

unfortunately WTI is now <$48 which will not help matters, nor the slump on wall street last night

WTI go up and down ... I think it is a good entry now at 198p.

don't rush to do anything this morning

Sometimes, if you don't bite the bullet, it shoots up instantly.

it's hardly "shot up"!

I'm not saying now... what I meant it is likely to go up suddenly.

Commonwealth Bank of Australia increase their holding http://http://www.moneyam.com/action/news/showArticle?id=5518219

208p now... already in profit... it will go up further.