Tullow has Commenced Production from the Watt Gas Field

Tullow Oil has begun first production from the Watt gas field, situated in the UK Southern North Sea. Production from the single well development commenced on November 28th, and was steadily increased over the next 24 hours to reach a stabilized flow rate of 148mmscfd.

Watt is the fourth field to be brought on production as part of the five field development, collectively known as CMS III, which uses the production and transportation facilities of the Caister Murdoch System (CMS), located some 115 miles north east of the Lincolnshire coast.

Partners in the CMS III development are ConocoPhillips as operator with 59.5%; Tullow Oil with 14.1% and GDF Britain Limited with 26.4%.

Production from the first three fields, Murdoch K, Hawksley, and McAdam, which produce from a number of different Carboniferous reservoirs, has exceeded expectations since first gas was produced from CMS III in September 2002. The current combined production potential from the four fields, at around 360mmscfd, is considerably above the predicted plateau rate of 300mmscfd

The final well in the CMS III program, Boulton H1, has now been re-entered after its temporary suspension, with anticipated production commencing in Q1 next year.

Complementing the startup of the Watt field, the current commissioning of the recently installed compressor unit on the Murdoch platform will double the CMS compression capacity. This will facilitate increased flow rates and further provide export capacity for future gas developments in the area via the CMS facilities.

Aidan Heavey, Chief Executive of Tullow stated "Once again we have been delighted by the better than anticipated production performance from these Carboniferous reservoirs. The combination of these exceptional production rates and the current strong UK gas market makes CMS III a very rewarding project for the partnership, and we will seek to emulate this in other areas."