Tullow Oil plc 2006 Results

21/03/2007

Another record year; exciting outlook for 2007 and beyond

21 March 2007 - Tullow Oil plc ('Tullow'), the independent oil and gas, exploration and production group, announces its results for the year ended 31 December 2006.

Tullow had an excellent year in 2006. Record operational and financial results were achieved in a favourable oil and gas pricing environment, and each core area continued to deliver strong performances. This outcome underpinned ongoing reinvestment in exploration and development activities together with a material increase in dividends and helped to create the financial platform for the acquisition of Hardman Resources Limited ('Hardman'), which was effective in December 2006 and completed in early January 2007.

Download Tullow Oil plc Results for the year ended 31 December 2006 (PDF, 416KB, opens in a new window)

Results Highlights

• 11% increase in average annual production to 64,720 boepd
• 89% organic reserves replacement; three year average organic reserve replacement of 98%
• Total reserves and resources increased by 149 to 506 mmboe
• Current production is 76,000 boepd and is expected to reach 85,000 boepd by year-end
• Initial commercial reserves booked in Uganda; First production scheduled for early 2009
• Preliminary assessment of gross recoverable reserves in the Albertine Basin of 100 to 250 mmbbls
• Three gas discoveries in the UK including the potentially significant K4 discovery in the CMS area
• Okume, West Espoir and Bangora developments successfully on stream
• Seven new African licences awarded
• Completion of £595 million Hardman acquisition in January 2007

Commenting today, Pat Plunkett, Chairman, said:
"The balance and diversity of Tullow's business allows us to adapt quickly and with flexibility to opportunities as they arise and to tailor our investment plans to the changing circumstances of the industry. Our production assets along with our development and exploration activities, and the Hardman business, leaves Tullow with a high-quality, opportunity-rich portfolio in each of its core areas. Our business is healthy and growing and should remain so for the foreseeable future."

Aidan Heavey, Chief Executive, said:
"Tullow had another remarkable year in 2006. Our assets delivered strong production growth and good organic reserves replacement. Seven out of 12 of our exploration wells were discoveries and we proved a new and significant hydrocarbon province in Uganda which is already having a material impact on reserves. We completed our largest ever acquisition and continued to attract and retain great people and acquire quality new acreage. We have an excellent portfolio managed by a top-class technical, commercial and financial team. Our strategy is clear, our business is growing and we are continuing to drive record performance throughout the business."

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