Tullow Awarded Exploration License in Cameroon

Tullow Cameroon Ltd. and partner Addax Petroleum Cameroon Ltd have signed a concession contract with the Cameroon Government for the Ngosso Area in the prolific Rio del Rey basin. Addax will operate the concession with a 60% interest while Tullow will hold the remaining 40%. This award expands Tullow's exploration portfolio in an area of significant hydrocarbon potential and complements Tullow's existing West African producing assets in Côte d'Ivoire.

The Ngosso concession, which lies in shallow water, contains a number of existing small oil discoveries - Narendi, Odiong and Oongue - in addition to numerous exploration opportunities. Via an aggressive exploration and appraisal program Tullow and Addax plan to confirm the commerciality of these accumulations and other prospects on the block.

A 200 sq km program of 3D seismic acquisition will commence in early 2003 with the intention of confirming the extent of various discoveries and prospects on the block. Drilling of two commitment wells will follow in 2004.

The Ngosso area sits in the prolific Rio del Rey basin close to the border with Nigeria. The 474 sq km block combines two blocks, MLHP-9 and PH-48a, previously operated by Elf and Pecten, a subsidiary of Shell. Water depth in the license area is shallow facilitating cost effective drilling and field development. Both shallow deltaic Miocene targets and deeper Eocene turbidite plays are present on the acreage. Miocene fields have been exploited in Cameroon since the 1970s and modern seismic techniques have highlighted the possibility of larger and deeper structures similar to those discovered in nearby Equatorial Guinea.

Commenting, Aidan Heavey, Chief Executive, Tullow, said: "This entry into Cameroon further demonstrates Tullow's commitment to growth via the drill bit in an exciting and vibrant Hydrocarbon Province. We are delighted to once again be working with Addax in expanding our existing core areas and targeting West African opportunities."