Tullow Makes Discovery at Hyedua-1 Offshore Ghana


Tano-Invorian Basin
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Tullow Oil says that the Hyedua-1 well, drilled on the Deepwater Tano license offshore the Republic of Ghana, has discovered a significant light oil accumulation based on the results of drilling, wireline logs and samples of reservoir fluid. Initial data from the well indicates that the Hyedua-1 and Mahogany-1 wells are likely to represent a single continuous trap extending across the West Cape Three Points and Deepwater Tano blocks. Tullow operates the Deepwater Tano license (49.95%) and also holds an interest in the West Cape Three Points license (22.9%).

Hyedua-1 is being drilled as the initial exploration well on the Deepwater Tano license. The well is targeting the equivalent Santonian turbidite sandstones encountered in the Mahogany-1 discovery well located some 5.3km to the northeast of Hyedua-1 on the adjacent West Cape Three Points license. It is being drilled by the "Belford Dolphin" deepwater drillship in water depths of 1,530m and has been drilled to a total depth of 4,002m.

The well has encountered a gross reservoir interval of 202m, containing 108m of high quality stacked reservoir sandstones, and net hydrocarbon-bearing pay of 41m. In addition, the results of logging and pressure testing indicate the strong likelihood that the reservoir sands are in communication with the Mahogany discovery, indicating combined hydrocarbon columns in excess of 361m within a continuous accumulation which extends across the Deepwater Tano and West Cape Three Points licenses. The well will now be sidetracked, prior to casing, to acquire core data over the reservoir interval and suspended for potential use as a development well.

Planning is already under way to rapidly appraise the accumulation. Suitable vessels have been identified to carry out a 910 sq km high-resolution 3D seismic survey, covering the combined feature on both the Deepwater Tano and West Cape Three Points blocks, and a program of up to three additional appraisal wells in late 2007.

Tullow's partners in the Deepwater Tano license are Kosmos Energy and a subsidiary of Anadarko Petroleum Corporation, (18% each), Sabre Oil & Gas (4.05%) and the Ghana National Petroleum Corporation (GNPC) (10% carried interest).

Commenting today, Aidan Heavey, Chief Executive of Tullow said:
"The discovery of oil in Hyedua-1, and the confirmation of its communication with the recent Mahogany discovery, represents a major step forward for the Republic of Ghana and for Tullow and its partners. It significantly enhances our understanding of the resource, enables us to focus and accelerate our appraisal program, and is highly encouraging for our plans to establish commercial production in Ghana."

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