Tullow Suspends Ordinary Shares Temporarily

The Board of Tullow Oil notes the recent press speculation about a substantial transaction and confirms that it is considering making an offer for 100 percent of the share capital of Energy Africa Limited for US$500 million (approximately GBP276 million). To this end, Tullow has signed agreements with shareholders holding in aggregate over 90 per cent. of Energy Africa's issued share capital that allow Tullow an exclusive period of negotiations which may or may not lead to an offer being made by Tullow for Energy Africa. Tullow has requested that Energy Africa grant Tullow access to such information as may be necessary to allow Tullow to complete its final due diligence.

It is currently envisaged that if an offer is made it will be in cash with a share alternative. Shareholders who hold over 25 percent. of Energy Africa and who are non-residents of South Africa have indicated that they would accept new Tullow shares in exchange for their Energy Africa shares. A substantial part of the cash element of the offer consideration would be financed by a new debt facility with the balance through new equity.

The Board of Tullow currently considers the possible acquisition to be classified as a reverse takeover pursuant to The Listing Rules of the UK Listing Authority and Irish Stock Exchange and therefore, in accordance with The Listing Rules, the Company has requested that the listing of its ordinary shares be suspended temporarily.

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