Oil companies typically raise equity to fund exploration (a risky business) and then borrow to pay for development activity (rather less so). Tullow Oil stuck to this template at the end of January with the largestever accelerated bookbuild of new shares by a non-financial UK company.
Tullow, quoted in London and Dublin, has grown rapidly over the past five years, becoming one of europe’s biggest oil independents. Over that time, its market value has leapt from about £300m ($464m) to near the £10bn mark. Active in 23 countries, including parts of europe, south asia and south america, it is now focusing on Africa, where it has made important discoveries in Ghana and Uganda and hopes to make more.
