Tullow Oil (TUWLF) (TUWOY) has long been a successful offshore operator. Building a company by means of offshore field discoveries carries an above-average amount of risk. Tullow management has minimized that risk by diversifying into a lot of different areas so that any one disappointment did not wreck the future prospects of the company. Now that the company is comfortably in the billion-dollar enterprise value range, management appears to be upping the ante by increasing the working interest in several of these offshore projects.
Now, the returns will be greater for a company of Tullow's