Tullow Oil has announced plans to tackle its debt overhang with a $750m rights issue that it says will also give it additional cash to step up drilling. The 25 for 49 rights issue, announced on 17 March, was priced at 130p/share, a discount of 45.2% to the previous day’s closing price. Explaining the thinking behind the move, Tullow said the combination of low oil prices and high development costs for Ghana’s TEN development had resulted in the group’s gearing exceeding its policy of less than 2.5 times debt to earnings before interest, tax, depreciation, amortisation and exploration (Ebitdax).