Tullow Oil - Re: TLW Stream Log - From DAVY (with the caveat...

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16:07 20/03/2017

From DAVY (with the caveat that they are a broker to TLW): Our updated valuation for Tullow Oil is 255p per share (previously 337p). This adjusts for an underwritten $750m rights issue, the Uganda farm-down and guidance provided at the time of the FY2016 results. Management argues that the rights issue should give the group room to grow. We believe Tullow will need to demonstrate good capital allocation over the next cycle for the share price to outperform. The funds from the rights issue provide an opportunity to achieve this.

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