Tullow Oil Press release on update drilling activities

Press Release/ Webtorial

Jubilee Phase 1 on schedule for first oil by year-end; FPSO arrived in Ghana
High-impact 2H 2010 drilling programme; key wells under way in Ghana and Uganda
Government approval for purchase of Heritage’s Ugandan assets expected imminently

6 July 2010 – Tullow Oil plc (Tullow) issues this Trading Statement in respect of the first half of the 2010 financial year ended 30 June 2010. This is in advance of the Group’s Half-Yearly Results, which are scheduled for release on Wednesday 25 August 2010. The Operational Update is in respect of recent Production, Development and Exploration activities. The information contained herein has not been audited and is subject to further review.

Download the full Trading Statement and Operational Update (PDF, 0.42MB):
http://www.tullowoil.com/files/pdf/trading_statement_and_operational_update_6_july_2010.pdf

HIGHLIGHTS of TULLOW OIL Progress
Production and Development Activities
– Jubilee Phase 1 development remains on schedule to deliver first oil during November or December 2010; FPSO ‘Kwame Nkrumah’ is now moored on station offshore Ghana.
– Approval for the sale of Heritage’s Ugandan interests to Tullow is expected as soon as a process is agreed between Heritage and the Government of Uganda to finalise outstanding issues.
– Group working interest production averaged 55,800 boepd for the first half of 2010 and is expected to average between 56,000 and 57,000 boepd for the full year, in line with expectations.

Exploration and Appraisal activities
– Shekhan-1 gas discovery in Pakistan; Eight out of eleven (73%) successful exploration and appraisal wells drilled to date in 2010;
– A high-impact 2H 2010 drilling programme of over 15 wells in Ghana and Uganda commenced with the Owo-1 exploration well in Ghana and the Nsoga-5 and Ngiri-2 appraisal wells in Uganda.
– Mahogany-5 completed the appraisal of southeast Jubilee and development studies are underway.
– Outside of Ghana and Uganda, seven potentially transformational exploration wells planned to commence over the coming nine months – Sierra Leone (2), Liberia (1), Mauritania (2), Guyana (1), French Guiana (1).
– Heads of Agreement signed in relation to the deepwater exploration licence, Block 47, in Suriname.

Group Operations and Financials
– First half capital expenditure of US$600 million with forecast 2010 expenditure of US$1,500 million.
– Net debt at 30 June 2010 was approximately US$200 million.
– With effect from 1 January 2010, Tullow’s presentational currency changed to US Dollars. Historical financial statements, restated in US Dollars, are released in a separate announcement today.

COMMENTING TODAY, AIDAN HEAVEY, CHIEF EXECUTIVE SAID:
“It has been a very good first half for Tullow. The recent arrival of the FPSO in Ghana represents the delivery of another major milestone ahead of first oil. The Heritage pre-emption in Uganda is now very close to finalisation and we look forward to working with our new partners, CNOOC and Total, to put together a development plan for the Lake Albert Rift basin. In addition, we continue to drill a number of high-impact exploration wells as we look to open new hydrocarbon basins to continue the company’s growth.”

Download the full Trading Statement and Operational Update (PDF, 0.42MB):
http://www.tullowoil.com/files/pdf/trading_statement_and_operational_update_6_july_2010.pdf

For more information: http://www.tullowoil.com/

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