Tullow Oil
Tullow Oil’s shares were above £8 last year when the oil price began its precipitous slide. The shares yesterday hit a new low of under £1.70. In truth, Tullow’s decline began long before the oil-price slump. The shares have fallen relentlessly from a record high of over £15 in 2012, and the company was demoted from the FTSE 100 earlier this year.
Tullow’s important TEN Project in Ghana is currently on schedule and on budget for first oil in mid-2016. With no debt maturities ahead of the project coming on stream, the long-term prospects for the company look good — if everything pans out. However, with a market cap of £1.5bn, net debt of $3.6bn, and assets concentrated in higher-risk Africa, Tullow is a markedly less safe bet than Billiton, although the potential upside is also markedly higher. An investment in Tullow would need to be watched carefully, with the risk of having to get out at a loss, if prospects were to turn sour.
I'm not sure what they mean with "were to turn sour"...
The Doctor
