AT a time when the potential for share appreciation in many Irish publicly quoted exploration companies is moribund, Tullow Oil is increasingly looking like the best of the bunch. The company this week went to shareholders looking for £30 million to help fund its promising exploration programmes in Pakistan and Syria.
The right issue, pitched on a one for five basis, received an enthusiastic response from the market. The shares attracted heavy investment interest, briskly moving ahead from the 80p preannouncement price to close the week at 91p. Institutional investors hold around 40 per cent of the equity.
The prospect that further discoveries from Tullow's intensive exploration programme may make it the focus of a takeover a roach is an added attraction to investment opportunists.
Chief executive Aidan Heavey is dismissive of takeover conjecture, pointing to the high market capitalisation of the corn an and the "very loyal shareholder base".
British Gas, Tullow's partner in Pakistan, is being mentioned as a potentially interested party. Should Tullow's high profile ultimately attract a takeover bid the potential capital gain will test the loyalty of its shareholder base.
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