Tullow Oil Case Study

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Q3 - OE_Strengths
What do you see as Tullow Oil’s particular strengths as an investment?
"They have a good technical team on the exploration side. And they sort of have a first mover advantage, previously, in a few basins."
Q4 - OE_Weaknesses
What do you see as Tullow Oil’s particular weaknesses as an investment?
"They are good people. But, when an organization has success, it believes too much in its ability to continue that success. And then, like many small companies there is no institutional process to replicate that success, meaning what really should have happened over the last several years is they should have stopped spending money on drilling. They had these corporate goals to continue to add a certain amount of resources each year, and they believed
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Please use a six-point scale where 6=extremely important and 1=not too important.
"1 [6-pt scale]. For us this is not important."
What is critical for Tullow Oil to achieve over the next 12 months for you to consider 2017 a success?
"I don't know how to answer this. Watching the returns they generate on the money they spend, which would take more than 12 months. That is the only thing we care about."
Q11 - TangShVal24-36Months
Looking out beyond 12 months, on a six-point scale where 6=very confident and 1=not at all confident, how confident are you that management will be able to deliver tangible shareholder value over the next two to three years?
"2 [6-pt scale]. This is a 2, because I don’t have any reason to be confident."
Q12 - OE_MostImportantThingsNeedToKnowMoreAbout
What are the two or three most important things you need to know more about in order for you to have greater confidence in Tullow Oil as an investment?
"Just watching what they do with the money. That's all – seeing the results."
Reasons for belief that factor will have the most impact on the industry over the next two to three

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