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The farm-down follows the recent signing of Production Sharing Agreements (“PSAs”) and the Kingfisher production licence with the Government of Uganda.

Tullow, CNOOC Limited and Total (“the Partners”) have been working closely since March 2011 on development options for the Lake Albert Basin and are looking forward to discussing them with the Government of Uganda later this year. It is currently expected that small-scale oil and gas production for the local power market will commence in 2013 from the Kaiso-Tonya area.  Major production from the Lake Albert Basin is anticipated to commence approximately 36 months after a basin-wide plan of development is approved by the Government of Uganda. Based on this timetable, ramp-up to major production would commence in 2016.

In accordance with the Government of Uganda farm-down consents, operatorship responsibilities within the basin will be divided between the Partners. Total will operate Exploration Area-1 (EA-1) and Tullow will operate Exploration Area-2 (EA-2). In the former Exploration Area-3A, CNOOC Limited will operate the new Kanywataba licence and the Kingfisher production license.

The Partners are now re-commencing drilling activities in the area to undertake a wide-ranging exploration and appraisal program in 2012. Immediate exploration priorities include drilling the Kanywataba prospect, a series of prospects west of the Nile starting with the Omuka well in EA-1 and further appraisal work in both EA-1 and EA-2.

AIDAN HEAVEY, CHIEF EXECUTIVE OFFICER OF TULLOW, COMMENTED TODAY:

“I am delighted that we have completed this farm-down with CNOOC Limitedand Total, two experienced partners with whom we have already built a strong working relationship. The Lake Albert Rift Basin is one of Africa’s most exciting oil discoveries and I look forward to working with our new Partners and the Government of Uganda in driving this project towards major production.”