By OGJ editors
HOUSTON, Sept. 26 -- Tullow Oil PLC, London, has agreed to acquire Hardman Resources Ltd., Perth, for about $1.47 billion (Aus.). The transaction, subject to 65 million new Tullow shares being issued and approval by Hardman shareholders, is expected to complete by early January 2007.
The acquisition will double Tullow's prospective acreage and increase its production by 6,000 boe/d from a 19% interest from producing Chinguetti oil field off Mauritania. It also will increase Tullow's proved and probable reserves by 30%, adding an additional 105 million boe of 2P commercial and contingent reserves. In addition, Tullow will gain operational control and 100% interest in Block 2 in Uganda's Albertine basin, and will add 16 exploration wells to its 2006-07 exploration program.
Hardman Resources assets include exploration interests in Tanzania, Suriname, Guyane, and the Falkland Islands as well as Tiof and Tevet fields off Mauritania with future gas potential from eight contiguous blocks covering 58,500 sq km.
The enlarged group will hold more than 110 licenses in 21 countries, with Africa accounting for over 45% of the total.
For the 6 months ended June 30, Hardman Resources reported profits before tax of $31.1 million (Aus.) and net assets as at that date of $542 million (Aus.).
