Uganda Operations and Licences

Operations

Tullow holds interests in three licences on the Ugandan side of the Lake Albert Rift Basin - Block 1, Block 2 and Block 3A.

Exploration activity has focused on the Lake Albert area where sizeable leads have been identified. During 2006 successful oil wells were drilled on the Mputa, Waraga and Nzizi prospects in Block 2. The Waraga-1 well flowed at a cumulative rate of approximately 12,000 bopd of light, sweet and waxy crude from three intervals and the Mputa-1 well tested 1,120 bopd. The Nzizi-1 well was logged but not tested.

The Mputa/Nzizi appraisal drilling programme was completed in December with the Mputa-4 well. The well proved the lateral extent of oil bearing reservoirs across the region although pressure data from the extended well test indicated some depletion over the test period.

During late 2006 / early 2007 the Kingfisher-1 well, located in Block 3A, was drilled on one of the large prospects identified on Lake Albert. The well intersected three significant oil-bearing intervals and tested at flow rates in excess of 14,000 bopd, however the well did not reach the primary target. The Kingfisher-2 appraisal well is expected to commence in the second quarter of 2008.

Extensive seismic programmes, both 2D and 3D, were carried out in all three blocks during 2007. These included a 3D survey in Block 3A and the Kaiso-Tonya area of Block 2 as well as 2D acquisition in the Butiaba-Wanseko region of Block 2 and the Pakwach area Block 1.

In the onshore Butiaba region of Block 2 and Block 1, numerous prospects have been identified following analysis of the recently acquired seismic. The results indicate considerable prospectivity and a light rig, the OGEC 750, has been contracted to drill a programme of approximately eight wells commencing in April 2008. This campaign will begin with the drilling of the Taitai prospect.

Recent onshore drilling activity has focused on the high impact Ngassa well targeting the largest structure in the basin. The well commenced in November 2007 but drilling difficulties resulted in the well being suspended in February 2008. The substantial primary and secondary oil objectives remain undrilled and it is now planned to drill Ngassa from an alternative location. Both onshore and offshore sites are being considered.

Tullow is working closely with the Ugandan Government to achieve first production from the region via an EPS in the second half of 2009. The EPS will produce 4,000 bopd to a new processing facility and power generation plant.

Licences

Licence	Fields	Area Sq Km	Tullow Interest	Operator	Other Partners
Block 1		4,285	50.00%	Heritage
Block 2		3,900	100.00%	Tullow
Block 3A		1,991	50.00%	Heritage