Tullow Picks Up Acreage in UK Licensing Round

Tullow Oil has been awarded four Seaward Production Licenses on the United Kingdom Continental Shelf. The license awards, announced by the Energy Minister, Stephen Timms, comprise a total of five UKCS blocks or part blocks, four operated and one non-operated.

Block 44/19 lies in the Southern Gas Basin in close proximity to the Caister Murdoch System ("CMS") infrastructure, in which TOUK has a significant interest, offering the potential for early commercial production through CMS. The work program allows for the re-evaluation of a 3D seismic survey, with the option to drill or drop the acreage after the data has been thoroughly assessed.

The 49/30b block, also in the Southern Gas Basin, secures the extension of a significant gas discovery in block 50/26b in which TOUK already has a 65% interest. The work program involves engineering studies to review the potential for early commercialization of this discovery.

The remaining three blocks, 38/5, 39/2b and 39/7, are located in the prolific Central North Sea oil province, close to production infrastructure, and build upon TOUK's recent expansion beyond the Southern Gas Basin. The work program involves reprocessing and acquisition of 3D seismic data with the option to drill or drop the acreage.

John Lander, TOUK's Managing Director stated: "We are delighted with this major award of very prospective and mainly operated acreage. The new blocks support both our strategy of growth from around our core areas in the Southern Gas Basin and our desire to continue to expand our presence in the oil province of the Central North Sea. We look forward to an early development decision of the 49/30b discovery and an exciting exploration program on the other acreage."