Tullow Oil Makes Operational Update

Tullow Oil has provided the following update in respect of its worldwide exploration and appraisal/development drilling programs.



Bangora Well (Tullow 30% and Operator)

The Bangora well was drilled to evaluate the potential of a large anticlinal structure, and reached a depth of 3635m on July 15th. At this point seasonal rains made continued safe operations impossible; all activities on the well were therefore suspended. Prior to the suspension of drilling, preliminary logging indicated the likely presence of gas-bearing sands in the primary target zone. A number of deeper secondary targets remain to be evaluated.

Operations will remain suspended until flood levels in the region recede and drilling operations, which will include a test of the well, can resume safely.


Rak-1 Well, (Tullow 10%)

The Rak-1 well spudded on June 1st and reached its final depth of 4880m in July. This well has been designated a tight hole by the Operator. Further information will be made available in due course.


Avouma Well (7.5 % Back-in right)

The Avouma well intersected oil in both the Gamba and Dentale reservoirs and has been tested at 6,600 bopd. Engineering studies will now commence with a view to bringing this discovery on stream through the Etame facilities.


Block 3, Turaco-2 Well (Tullow 50%)

The Turaco-2 well in Uganda Block 3 was successful in encountering a number of hydrocarbon-bearing zones. However due to technical difficulties the testing program could not be completed. A new rig has now been contracted and a further well, Turaco-3 will be drilled from the same location to further investigate the hydrocarbon-bearing zone encountered in Turaco 1 and 2. Drilling is expected to commence in October and will be followed by a further well in early 2005 based on the current 3-D seismic program in the Turaco area.

Block 2 (Tullow 50%)

An extensive 2-D seismic survey has been completed on Block 2. Results are encouraging and further seismic acquisition is planned later in the year.

Summary of Current and future Exploration drilling Program

In addition to the projects outlined above the following wells are currently in progress or at advanced planning stage.

Country            Licence       Prospect       Interest   Spud Date
Congo              Moho-Bilondo  MOBIM-1        4%         In progress
Congo/Angola JDA   K/A - IMI     KX-2           2%         In progress
Egypt              Matruh        Amethyst-1     20%        August
Cote d'Ivoire      CI-26         Acajou North   24%        September
Romania            EPI-3         Costisa        43%        September
UK                 P133          Zeta           22.22%     September
Mauritania         Block 2       Dorade         20%        Q3 2004
Eq Guinea          Block G       Akom North     15%        Q4 2004
Mauritania         Block 1       Petrel-1       32%        Q1 2005


Republic of Congo

M'Boundi Field (Tullow 11%)

An active program of development is continuing on the M'Boundi field in the Congo with 3 rigs currently drilling. The results of recent step-out/appraisal wells have enhanced production to a current level of approx 18,500 bopd (gross). Tullow expects to be in a position to upgrade reserves from this project at year end. It is planned to drill a minimum of 10 further development wells before the end of 2004.

N'Kossa (Tullow 4%)/Moho Bilondo (Tullow 4%) Projects

Development drilling is currently ongoing on N'Kossa (2 wells) and Moho-Bilondo where the MOBIM-1 exploration well will shortly be tested.


Aggregate production in Gabon is currently running at a level of approximately 15,500 bopd net to Tullow. A number of development initiatives are ongoing within Tullow's Gabonese licenses.

Etame Field (Tullow 7.5%)

Following the testing of the Avouma well the rig will move to drill and complete the ET-5H development well, with production commencing in late July.

Niungo (Tullow 40%) and Tchatamba South (Tullow 25%)

Additional production and development drilling is also planned for the remainder of 2004 on Niungo and Tchatamba South.

Equatorial Guinea

Ceiba Field (Tullow 14.25%)

Production is currently averaging approximately 40,000 bopd gross. The Ceiba-23i water injector in the north of the field is currently being completed and will be followed by two additional producing wells later in the year.

Northern Block G (Tullow 14.25%)

Development planning for three of the seven discoveries to the north of the Ceiba field, collectively known as Northern Block G, is well advanced and official approval is expected in the coming weeks. First production from this development is targeted for early 2007. A commitment exploration well on the Akom North prospect is also scheduled for late 2004.

Aidan Heavey, Chief Executive of Tullow commented on the program as follows:

"This is a very exciting time for Tullow, with a range of important exploration and development projects currently in progress. In Bangladesh, following the success of the Lalmai exploration well, we are encouraged by results to date from the Bangora well and look forward to resuming work as soon as the weather allows. In Africa, recent results from M'Boundi provide further evidence that this is becoming a truly world-class field while Mauritania, Uganda and Cote d'Ivoire each have significant upside potential which will be evaluated over the remainder of 2004. Good progress has also been made in Equatorial Guinea both in enhancing production from the Ceiba field and development planning for Northern Block G.

"I look forward to outlining the strategy and targets for the Group at the Interim Results in September."