Ghana Operations and Licences

Operations

Tullow has interests in two exploration licences offshore Ghana – Deepwater Tano and West Cape Three Points.

Both blocks lie in deep water and in 2007 two successful exploration wells located a substantial discovery, which straddles the boundary between the two blocks, known as the Jubilee field.

In 2008 an accelerated Jubilee appraisal and development programme commenced on the field. The first appraisal well, Mahogany-2, was drilled in May followed by the Hyedua-2 and Mahogany-3 wells at the end of 2008. In 2009, the successful Mahogany-4 well was drilled proving up the eastern section of the reservoir and the Mahogany Deep-2 well commenced drilling in October. The results from these wells indicated that Jubilee is a continuous stratigraphic trap with combined hydrocarbon columns in excess of 600 metres.

Drill stem tests on the Mahogany-2 and Hyedua-2 wells confirmed that the Jubilee field reservoirs have good lateral continuity and are highly productive with production wells expected to have capacity in excess of 20,000 bopd. The results of these wells prompted a significant volumetric revision, with the P90 recoverable resources of the field now estimated at over 600 million barrels and an ultimate upside potential of 1.8 billion barrels. Tullow booked 170 million barrels of commercial reserves associated with Jubilee at year-end, equivalent to 490 million barrels of gross field reserves.

In parallel with the appraisal programme, development planning for the Jubilee field is progressing rapidly. The operator structure is now in place and Tullow has been designated as the field operator. In August 2009, the Ghanaian Government signed the Phase One Plan of Development which will focus on the core area of the field utilising a 120,000 bopd FPSO and subsea development scheme. All long lead items have been ordered and are under fabrication and the project is on target for first production in the fourth quarter of 2010.

In February 2008 the Odum prospect in the West Cape Three Points block was drilled, discovering the second oil field in Tullow Ghanaian acreage. Following the successful Odum-2 appraisal well in December 2009 the field, which is 13 km from the Jubilee field is on track towards a commercial development and could be tied-back to future infrastructure.

In March 2009, a further potentially significant discovery was made at Tweneboa-1. A highly pressured light hydrocarbon was discovered with seismic and pressure data indicating that the field could cover 200 sq km with an upside potential of 1.4 billion barrels. Appraisal of the field began in December 2009 when the Tweneboa-2 well commenced drilling.

Tullow plans to drill further exploration and appraisal wells in Ghana during 2010. Potential prospects have been identified in the deepwater region including Teak, Owo and Mahogany-5 as well as new leads that are emerging to the southeast of the Jubilee field.

Licences

Licence	Fields	Area Sq Km	Tullow Interest	Operator	Other Partners
Deepwater Tano	Jubilee	1,108	49.95%	Tullow	Anadarko, Kosmos, GNPC, Sabre,
West Cape Three Points	Jubilee	1,497	22.90%	Kosmos	Anadarko, GNPC, E.O. Group, Sabre,