Tullow Oil plc Trading Statement and Operational Update

13/07/2005

Tullow Oil plc (Tullow) issues this combined Trading Statement in respect of the first half of the 2005 financial year and Operational Update in respect of Production, Development and Exploration activities during the period beginning April and ending July 2005. Tullow is a leading independent oil and gas, exploration and production group, quoted on the London and Irish Stock Exchanges (symbol: TLW) and is a constituent of the FTSE 250 Index. The Group has interests in over 90 production and exploration licences in 16 countries and focuses on three core areas: NW Europe, West Africa and South Asia.

The Trading Statement is in advance of the Group’s Interim Results, which are scheduled for release on 14 September 2005. The information contained herein has not been audited and is subject to further review.

HIGHLIGHTS

Operational Overview

• Trading during the first half was at record levels, with a strong production performance combining with continuing favourable oil and gas pricing.

Production and Reserve Enhancement

• In the first half of 2005, average Group working interest production increased to 57,350 boepd, more than double that of the same period in 2004 and 41% ahead of the average for 2004.
• Approximately 30 successful development and appraisal wells were drilled in the first half. Production levels continue to increase and are anticipated to average 60,000 boepd for the second half.
• Following the commencement of production from the Horne & Wren project on 9 June 2005, UK gas production is at an all time high of over 150 mmscfd.

Exploration

• Gas discovery with the Opal well in the Southern North Sea close to Tullow-owned infrastructure; two further UK wells confirmed for second half.
• Tullow-operated three well exploration programme in Gabon to commence in November.
• A minimum of eight exploration wells are confirmed in the drilling schedule for the second half of 2005 in all three core areas.

Acquisitions and Portfolio Management

• The £200 million acquisition of the Schooner and Ketch producing assets completed on 31 March 2005, within three months of the deal being agreed.
• Sale of Alba/Caledonia ($112 million/£59 million) completed in June and completion of offshore Congo ($72 million/£38 million) disposal imminent.

Commenting today, Aidan Heavey, Chief Executive of Tullow said:

“The first half of 2005 continues to show the benefits of the acquisition and development work undertaken over the last 12 months. Recent investments, such as Schooner and Ketch, are already contributing to performance, exploration activity is increasing and the outlook for the remainder of the year is very encouraging.”

CONFERENCE CALL

There will be a conference call at 09:30 (BST) today, hosted by Aidan Heavey, Chief Executive, Paul Mc Dade, Chief Operating Officer and Tom Hickey, Chief Financial Officer of Tullow Oil plc:

For UK and international participants please call +44 (0)20 7365 1829 and request to be connected to the Tullow Oil teleconference. For participants in Ireland, please call 01 659 2811.

A replay facility will be available from one hour after the conference call until 18:00 (BST) on Tuesday 19 July. Please call +44 (0)20 7784 1024, access code: 5824709#.

For further information contact:

Tullow Oil plc	Citigate Dewe Rogerson	Murray Consultants
(+44 20 7333 6800)	(+44 207 638 9571)	(+353 1 498 0300)
Aidan Heavey	Martin Jackson	Joe Murray
Tom Hickey
Paul Mc Dade

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