A detailed update on Tullow's business will be provided in the company's Trading Statement and Operational Update which will be released on January 31, 2007.
FIRST OIL FROM THE OKUME COMPLEX (Tullow 14.25%)
Crude oil production from the Okume Complex, offshore Equatorial Guinea, commenced on December 14, 2006 at an initial rate of 4,000 bopd from a single well. Production will steadily increase during 2007 as more wells are brought on stream and peak production of 60,000 bopd is expected to be achieved in mid-2008.
The Okume Complex Project is a development of more than 40 wells utilizing two tension leg platforms, three fixed satellite platforms and a central processing facility. The oil from the development will be exported by tanker via a Floating Production Storage and Offloading vessel, which is shared with the adjacent Ceiba Field in which Tullow also has a 14.25% interest. This common use of facilities provides significant operating cost benefits and the two projects combined will make a significant contribution to Tullow's production over the coming years.
ACQUISITION OF LICENSES IN GABON
Tullow has recently acquired a package of assets from the Gabonese Government through a 50:50 Joint Venture with AIC-Petrofi Limited. The package comprises interests in three producing fields and back-in rights to a further nine Exploration Licenses. Two additional fields, presently held under exploration licenses, are awaiting development approval and are expected on stream over the next 18 months.
The acquisition adds approximately 350 boepd of current production net to Tullow from the Obangue (3.75%), Tsengui (3.75%) and Oba (5%) fields. As the development of these fields progresses and the two additional developments are brought on stream, net working interest production is expected to rise to approximately 1,000 boepd by early 2008.
The exploration licenses are located in areas of significant potential and when combined with Tullow's existing Gabonese interests give the Group exposure to almost 40% of Gabon's currently licensed acreage. Although the consideration cannot be stated for reasons of commercial confidentiality, it can be confirmed that it represents less than 1% of Tullow's market capitalization.
Commenting today, Aidan Heavey, Chief Executive of Tullow said:
"We are delighted to announce further progress from our business in West Africa. First oil from the Okume Complex project ahead of schedule builds on our existing production from the region and we look forward to further progress next year as the Okume Complex moves towards peak production. The acquisition of the Gabonese licenses represents a good opportunity to extend our existing business in the country where the Group is focused on building a long-term production, development and exploration business."
Tullow is a leading independent oil & gas, exploration and production group with interests in approximately 90 exploration and production licenses across 17 countries and focuses on three core areas: NW Europe, Africa and South Asia.
Tullow's NW Europe interests are primarily focused on gas in the UK Southern North Sea where it has significant interests in the Caister-Murdoch System and the Thames/Hewett areas and operates over 60% of its production.
In Africa, Tullow has exploration and production in Gabon, Cote d'Ivoire, Congo (Brazzaville) and Equatorial Guinea and a large gas field development and appraisal program in Namibia. Tullow also has exploration programs in Mauritania, Senegal, Cameroon, Uganda, Congo (DRC), Madagascar, Angola and Ghana.
In South Asia, Tullow has exploration and production in Pakistan and Bangladesh and high impact exploration activities in India.
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