Positive Outlook: Tullow's Development on Track at Ghana, Uganda Projects

Tullow Oil has issued a Trading Statement in respect of the first half of the 2009 financial year ended June 30, 2009. This is in advance of the Group's Half-Yearly Results, which are scheduled for release on Wednesday, August 26, 2009. The Operational Update is in respect of recent Production, Development and Exploration activities. The information contained herein has not been audited and is subject to further review.

Ghana and Equatorial Atlantic Activities

  • Jubilee Phase 1 Plan of Development finalised with the Government of Ghana for formal approval. Development drilling, FPSO conversion and subsea facilities fabrication all on track for 2010 first oil.
  • Tweneboa-1 makes a significant discovery, extending the Jubilee play westwards.
  • Five potentially transformational exploration and appraisal wells scheduled for 2H 2009; Mahogany-4, Mahogany-Deep-2, Tweneboa-2 and Teak-1 in Ghana and South Grand Lahou in Cote d'Ivoire.
  • Farm-in offers received for French Guiana acreage. New 3D seismic surveys reveal large leads offshore Guyana and Liberia. A further two licenses are being acquired elsewhere in Liberian Basin.

Uganda Operations

  • Current activities are focused on development planning and commercialization. Detailed evaluation of short-term fuel supply for local power and options for full-scale refining and export has commenced.
  • Wahrindi-1 finds oil, extending the Victoria Nile Delta play. New leading edge gravity-seismic technologies are being applied to fully explore and develop this multi-billion barrel basin.
  • Ngassa-2 drilling operations are ongoing and oil shows have been encountered. Total Depth is expected to be reached in August.

Group Operations and Financials

  • Group working interest production averaged 59,000 boepd for the first half of 2009 and is expected to average approximately 58,000 boepd for the full year.
  • First half capital expenditure of £425 million with forecast 2009 expenditure of £700 million.
  • Net debt at June 30, 2009 was approximately £435 million.

Commenting today, Aidan Heavey, Chief Executive, said, "In the first half of 2009, Tullow has focused on the exploration, appraisal and development of the Group's two major growth projects in Ghana and Uganda. This has resulted in significant resource additions in Uganda and the discovery of the potentially transformational Tweneboa field in Ghana. In addition, we have made excellent progress with the Phase 1 development of the Jubilee field and I am delighted to report that this has culminated in the finalization of the Development Plan with the Ghanaian Government.

"It promises to be an exciting second half of the year with high-impact exploration and appraisal wells in Ghana and Cote d'Ivoire, the result of the significant Ngassa-2 well in Uganda and the development of commercialization options for the substantial Ugandan resource base. The outlook for Tullow remains very positive."