Uganda Operations and Licences

Operations

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

Recent exploration activity has focused on the Lake Albert area where sizeable leads were identified with marine seismic data acquired in 2003. Two further seismic programmes were completed in 2005, on Block 2 and Block 3A. This led to the definition of several onshore structures in Block 2.  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.

During the first quarter 2007 the Kingfisher-1 well, located in Block 3A, was drilled on one of  large prospects identified on Lake Albert.  The well intersected four significant oil-bearing intervals. The first interval, with a net pay of 12m, was successfully tested in November 2006 at a maximum rate of 4,400 bopd. Three further intervals, with a net pays of 24m, 8.5m and 7.2m respectively yielded maximum oil flows totalling 9,500 bopd.

With interests in both Uganda and Congo (DRC), Tullow has a unique exposure to the potential of this very promising area through its basin-wide presence in the Albertine Rift.  During 2007/2008 Tullow intends to conduct an extensive exploration programme across the most prospective onshore and offshore areas of the basin, including the drilling of a number of exploration and infill wells and the acquisition of both 2D and 3D seismic. A 300 sq km 3D seismic in Block 3A has been completed and a 200 sq km 3D seismic survey in the Kaiso-Tonya valley is in progress and offshore coverage of the Ngassa area (270 sq km) will start in September 2007.

A 2D seismic campaign which started in January 2007 is continuing, alternating between Butiaba-Wanseko (the northern portion of Block 2) and the Pakwach area of Block 1; in total up to 1,200km of 2D seismic data split between Butiaba-Wanseko and Block 1 is expected to be acquired in 2007 as part of this 2D seismic campaign. 

The Nzizi-2 and Mputa-3 appraisal wells have been successfully drilled and Mputa-4 is now in progress.  The Ngassa-1 well in Block 2 is scheduled to commence in September 2007.

Licences