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This statement is issued in advance of the Group’s Annual General Meeting, which is being held at the Haberdashers’ Hall in London, at 12pm today. Please note that a Capital Markets Day is being held in London on Wednesday 25 June 2014 and that the Group will announce its half year Trading Statement and Operational Update on 2 July 2014, followed by the Half Year Results on 30 July 2014.


Exploration and Appraisal

  • Drilling success continues in Northern Kenya with a further two successful discoveries from three wells in the period; the campaign in the first basin has now delivered seven successful discoveries from eight wells drilled to date
  • Frégate and Tapendar well results conclude initial two‑well exploration campaign offshore Mauritania; analysis of the results and integration with seismic data will be carried before the next well locations and timings are confirmed
  • Successful Vincent discovery, offshore Netherlands, enhances value of Dutch gas portfolio
  • Well results from high-impact exploration campaigns in Kenya, Ethiopia and Norway due in May

Production and Development

  • Full year 2014 Group production guidance remains at 79,000‑85,000 boepd
  • Jubilee field remains on track to deliver 2014 gross average production of around 100,000 bopd
  • TEN development in Ghana progressing well; on track to deliver first oil in mid‑2016
  • Development and pipeline studies progressing as planned in Kenya
  • MoU signed with Government and partners in Uganda agreeing a commercialisation plan for the Lake Albert development

Financial and Portfolio Management

  • US$650 million senior notes offering with a 6.25% coupon successfully completed
  • Refinanced US$500 million corporate revolving credit facility and increased to US$750 million
  • In a separate release today, Tullow announced that it has entered into a farm down agreement for the Schooner and Ketch gas fields; total consideration is equivalent to US$75.6 million, plus a royalty on future Schooner developments; completion expected before year end
  • TEN farm-down and further Southern North Sea asset sales ongoing; Pakistan sale expected to complete in the coming months

Aidan Heavey, Chief Executive Officer, Tullow Oil plc, commented today:

“We have made good progress across the business since the beginning of the year. Following the issue of our second senior note and the re‑financing and expansion of our corporate revolving credit facility, the Group is well funded with a strong balance sheet and cash flow to support exploration, development and production activities. Exploration success in Kenya has continued with the Amosing and Ewoi discoveries in January and development planning for oil production in Kenya and in Uganda is well under way. The TEN Project in Ghana remains on budget and on schedule for first oil in mid‑2016 and the TEN farm-down process is ongoing. Progress with the sale of Tullow’s Southern North Sea gas assets has been made with a farm-down of the Schooner and Ketch fields agreed and conclusion of our Pakistan asset sale is expected in the coming months. With high-impact well results expected in the coming months from new and existing basins in Kenya, Ethiopia, Gabon and Norway, there is much to look forward for the remainder of the year and beyond.”