Tullow Oil to make stock offer for Energy Africa

Tullow Oil PLC, London, said it intends to make a stock offer for Energy Africa Ltd., a South African oil and gas exploration and production company.

May 4, 2004

By OGJ editors
HOUSTON, May 4 -- Tullow Oil PLC, London, said it intends to make a stock offer for Energy Africa Ltd., a South African oil and gas exploration and production company.

Tullow said it intends to offer $500 million for Energy Africa shares. Shareholders representing 90.52% of Energy Africa's stock are expected to accept the offer.

In addition, Tullow agreed to acquire a 50% stake in a joint venture between African Petroleum Investment Ltd. and Energy Africa. Tullow is buying that interest from APIL for $70 million.

The acquisitions will provide Tullow with an almost equal balance between oil and gas production, the company noted. Upon completion of the stock offering, Tullow anticipates that it will have production of more than 50,000 boe/d.