Tullow Oil plc Unaudited Interim Results to 30th June 2004

13th September 2004

Highlights

Tullow Oil plc announces its Interim Results for the period ended 30th June 2004.

Tullow Oil is an independent oil company with interests in the UK, Africa and South Asia. During the period, Tullow completed the acquisition of Energy Africa Limited and 50% of Energy Africa Gabon for a total headline consideration of $570 million.

The results of Energy Africa have been consolidated with effect from 28 th May 2004 and accordingly one month of revenue has been reflected in the Interim Results.

Strong First Half Performance

  • Turnover increases by 16% to £76.5 million (2003 - £66.0 m)
  • Operating Profit before Exploration Activities increased by 32% to £30.9m (2003 - £23.4m)
  • Operating Profit increases by 51% to £26.5m (2003 - £17.6m)
  • Operating Cashflow of £57.5m (2003 - £46.1m)
  • Net Debt at 30 th June £85.8m (2003 - £30.6m )
  • Interim Dividend of 0.5p/share proposed (2003 - nil)
  • Current Group production over 53,000 boepd

Acquisition of Energy Africa

  • Transaction became wholly unconditional on 28 th May
  • $300 million acquisition banking facility signed April 2004
  • Placing of 130 million new Tullow shares at 95p oversubscribed
  • Integration process well advanced

Successful Exploration

  • UK North Sea: Monroe exploration well discovered gas
  • Bangladesh: Lalmai well discovered gas, Bangora awaits testing
  • Uganda: Turaco well encountered hydrocarbons
  • Gabon: successful well in Etame permit
  • Congo: MOBIM-1 well enhances Moho-Bilondo commerciality

Active Development and Exploration Programme

  • Congo (Brazzaville): M’Boundi development continuing to add value
  • UK North Sea: Horne and Wren development under way, first gas early 2005
  • Equatorial Guinea: Northern Block G development approved
  • Namibia: Kudu Joint Development Agreement signed
  • Côte d’Ivoire: West Espoir facilities being fabricated
  • Active exploration programme – 9 wells to be spudded by year end

Board and Senior Management Changes

  • David Bamford appointed non-executive Director in July
  • Adrian Nel appointed Exploration Director
  • Paul McDade appointed Chief Operating Officer
  • John Lander and Eskandar Maleki retired from Board in April 2004

Commenting on the results, Tullow Chairman, Pat Plunkett, said:

“The acquisition of Energy Africa is without question the most important event in the Company’s history. Progress in the three months since completion has been considerable, with interests increased in selected acreage, development plans for proven discoveries advanced and a series of positive drilling results achieved. While our immediate outlook is well supported by favourable oil and gas prices, the Energy Africa deal has transformed Tullow and positions the Group to achieve substantial growth in some of the world’s most prospective hydrocarbon provinces.”

Download Tullow Oil plc Interim Results to 30th June 2004 (PDF, 389KB, opens in a new window)

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For further information contact:

Tullow Oil plc
(+44 20 7333 6800)
Aidan Heavey
Tom Hickey

Citigate Dewe Rogerson
(+44 207 638 9571)
Martin Jackson
Kate Delahunty

Murray Consultants
(+353 1 498 0300)
Joe Murray

For further information see www.tullowoil.com

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