Oil discovery in the Ngara-1 exploration well in Uganda

Located approximately one kilometre from the crest of the structure, the well was drilled to a total depth of 741 metres and has been successfully logged and sampled. Good quality basal sands were encountered with over 8 metres of net oil pay in a 17 metre gross reservoir interval with additional potential up-dip.

The Ngara-1 well is located approximately 3 km south of the Ngege-1 discovery and de-risks two adjacent traps within the Ngara fault block. Consideration will be given to these and other prospects as part of the next Block 2 drilling campaign which is expected to commence early in 2010.

The well is now being suspended as a future oil producer. The Ngara-1 well and the other discoveries made in Uganda will form part of the detailed basin development plan which the integrated project team is currently working on.

Commenting today, Angus McCoss, Exploration Director, said:

"Ngara-1 is the tenth discovery in the Victoria Nile Delta play and marks the end of a very successful opening phase of the Tullow-operated exploration campaign in the Butiaba region of Block 2. We are now planning to integrate all regional well and seismic data with the recently acquired gravity survey. The results from this work will further enhance our understanding of the subsurface and identify additional prospectivity within the region.

Preparations are now under way to commence a new drilling programme with our partner, Heritage Oil, in Block 1 in the fourth quarter of this year. We are also looking forward to the results from the Ngassa-2 well which remains on track to reach Total Depth in August."