Tullow Chief: Mahogany Reserves Will Likely Exceed Expectations

Tullow Oil plc announced that the high-impact Mahogany-1 exploration well drilled on the West Cape Three Points 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.

The well, which is drilling in water depths of 1,320m, has been drilled to a depth of 3,683m and has to date, encountered a gross hydrocarbon column of 270m with 95m of net stacked pay. It is planned to drill to a total depth of approximately 4,200m to test further prospective horizons. Upon reaching the target depth, the well will be suspended pending further evaluation and additional appraisal drilling will be required. The Mahogany-1 well will be tested at a later date as part of the appraisal program.

The Mahogany discovery, a Santonian turbidite stratigraphic trap, opens a new play fairway in the Tano Basin. The structure straddles both the West Cape Three Points and Deepwater Tano licenses in which Tullow has interests of 22.9% and 49.95%, respectively. Tullow is also the operator of the Deepwater Tano license.

The Mahogany-1 well was drilled using the "Belford Dolphin"--a dynamically positioned fifth-generation deepwater drillship. This is the first exploration well to be drilled under the West Cape Three Points seven-year exploration agreement and follows a 1,076 sq km 3D seismic survey on the block in 2005.

Aidan Heavey, Chief Executive of Tullow, said:

"The discovery of oil in the Mahogany well represents a major event for the Republic of Ghana and for Tullow. Based on evidence to date, ultimate reserves are likely to be materially in excess of previous estimates, with some high-potential zones still to be drilled. We look forward to working with our partners to realize the full potential of Mahogany and our additional prospects in the region."

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