Bangladesh Operations and Licences

Operations

Tullow first became involved in oil and gas exploration activities in Bangladesh in 1997 when it took a majority interest in the mainly offshore Blocks 17&18, in the Bay of Bengal. In 2001 the Company signed its first onshore licence, Block 9, which lies close to Dhaka city.

Tullow (30%) operates Block 9 with partners Niko Resources (60%) and BAPEX (10%), the state exploration and development company. A three well drilling programme carried out in 2003 and 2004 resulted in two gas discoveries, Bangora-1 and Lalmai-3. The appraisal programme for these discoveries was completed in 2006.  Production from the Bangora-1 well commenced in May 2006. Additional production was added in 2007 from the Bangora-2 and Bangora-5 wells.  Commerciality was declared in December 2006 and the Field Development Plan was approved in May 2007. The next phase of development, which will increase production from the Bangora facility, is on track for completion in 2008.

Tullow has a 32% interest in Blocks 17&18 which lie immediately south of the producing Sangu gas field. Since 1997 Tullow has conducted an extensive work programme, including the acquisition of offshore, transition zone and onshore seismic data. In December 2005, Tullow concluded a farm-out agreement with Total.  Approval for the assignment to Total and final ratification of a 3 year licence extension was received in March 2007.  Total took over the operatorship of the block in August 2007. Recent exploration activities include a bathymetry survey in 2007 and an offshore 3D seismic programme, which is scheduled to commence in March 2008.

Licences

Licence	Fields	Area Sq Km	Tullow Interest	Operator	Other Partners
Block 9	Bangora-Lalmai Discovery	6,880	30%	Tullow	Niko, Bapex
Blocks 17&18		13,724	32%	Total	Okland, Rexwood, PTTEP*

Note:* - PTTEP to acquire part of total's interest, subject to necessary approvals.