Tullow to Kick Off Next Phase of Ugandan Exploration

Tullow announced that the Jobi-East-1 and Mpyo-3 wells, in Exploration Area 1 (EA1) onshore Uganda, have both successfully encountered oil in line with pre-drill expectations.

The Jobi-East-1 and Mpyo-3 wells, in Exploration Area 1 (EA1) onshore Uganda, have both successfully encountered oil in line with pre-drill expectations. These wells have successfully calibrated large seismic and gravity data anomalies, which have now been proven as oil accumulations.

Jobi-East-1 has discovered 20 meters of net hydrocarbon bearing reservoir in a fault block adjacent to the giant Jobi-Rii oil field. The well was drilled 4.4 kilometers east of the Jobi-1 discovery well in a down-dip location. Successful logging and sampling operations have confirmed the presence of oil in two zones of high quality reservoir totaling 15 meters of net pay. In addition, gas has also been logged and sampled within sands totaling 5 meters of net pay.

The well was drilled by the OGEC RR600 and reached a total depth of 563 meters. It has been suspended allowing for future re-entry to conduct production testing operations. An accelerated drilling campaign comprising up to four Jobi-East appraisal wells is planned for the second half of 2011 to assess the full extent of this important new oil accumulation.

The Mpyo-3 well has intersected 21 meters of oil bearing reservoir sands at a depth of 340 meters. The well was drilled 1.6 kilometers southeast of Mpyo-1 in a down-dip location within a fault block adjacent to the Mpyo-1 discovery. Successful logging operations confirmed the sands to be of good quality and that they contain highly viscous oil similar to that encountered in Mpyo-1.

The well was drilled by the OGEC IRI-750 to a total depth of 513 meters and was suspended allowing for future re-entry to conduct production testing operations.

Subject to completion of the farm-down, Tullow will have a 33.33% interest in the EA1 license and its partners will be Total 33.33% and CNOOC 33.33%. Tullow is currently acting as interim operator for the license until Sept 2011.

Commenting on Jobi-East-1 and Mpyo-3, Angus McCoss, Exploration Director, said, "The Jobi-East-1 and Mpyo-3 well results mark an excellent start to this next phase of our exploration and appraisal campaign in the Lake Albert Rift Basin. We look forward to many more exciting wells as we endeavor to determine the total oil resource base which will underpin the basin-wide development preparations currently in progress."

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