Tullow Oil sank to a record low, with trading of the shares briefly halted in London, after the company raised its net debt forecast as it holds talks with creditors over various options.

The shares plunged as much as 35 per cent to 5.55 pence, the lowest since trading began in 1989. In a trading update on Friday, the company raised its year-end net debt forecast to $1.2 billion (€1.04 billon), from $1.1 billion.

The company also forecast 2025 production at the lower end of its 40,000 to 45,000 barrels of oil equivalent per day (boepd) range.

“Tullow is progressing alternative options with certain of its creditors, including an amend and extend exercise and other forms of liability management transactions,” the company said.

The Irish-founded oil explorer became one of the hottest independent oil explorers after making several major African discoveries in the late 2000s. But it took on huge debts to develop them and, in recent years, struggled to bring Kenyan fields onstream. This year it agreed to sell the Kenyan deposits and offloaded assets in Gabon.

“The new detail on its debt refinancing plans is that Tullow is also progressing other options with certain creditors,” James Hosie, an equity analyst at Shore Capital, said in a note. “This suggests to us an increased likelihood that the refinancing could result in significant equity dilution.” - Bloomberg/Reuters