Tullow Oil to Acquire Additional Interests in Thames Fields

Tullow Oil's UK subsidiary has entered into an agreement with Eni UK Limited to acquire their 23.33% equity in the Thames gas fields and the associated license interest, P037 (Block 49/28). Tullow has an existing 43.33% interest in Thames, purchased from BP/ARCO in 2001.

The total consideration for the transaction is £5.2 million, with an effective date of January 1, 2002. The net consideration payable by Tullow on completion will be adjusted to reflect revenues and costs accruing to the interest since the effective date. The net remaining reserves attributed to the acquired interest at the effective date are estimated at 10 bcf of sales gas. Gas associated with this interest is sold on long-term contract to British Gas Trading as part of the same common stream as for Tullow's existing interest.

Completion of the transaction is anticipated to occur in late 2003 subject to the necessary governmental and co-venturer approvals.

John Lander, TOUK's Managing Director, stated: "Thames is an important hub for existing gas fields and possible future developments, such as Gawain South East. This acquisition, along with the recently announced equity increases in the Horne discovery and Hewett / Bacton, the latter with a proposed assumption of operatorship, continues to demonstrate our commitment to adding value at every opportunity in this core area."