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This is in advance of the Group’s Half-Yearly Results, which are scheduled for release on Wednesday 25 July 2012. The information contained herein has not been audited and is subject to further review.

  • Record first half revenues expected; $2.9bn farm-down in Uganda completed
  • Jubilee remediation programme progressing well; basin-opening Ngamia-1 discovery in Kenya
  • 65% E&A success ratio year to date; significant second half exploration activity planned.

Download Tullow Oil plc Trading Statement and Operational Update

HIGHLIGHTS

Exploration and Appraisal activities

  • Basin-opening Ngamia-1 discovery in Kenya; accelerated E&A programme planned with additional rigs.
  • 65% exploration and appraisal success ratio year to date.
  • Major E&A programme re-commenced in Uganda with four rigs currently active.
  • High-impact E&A programme of approximately 40 wells over the coming 12 months which includes drilling in Guyana, French Guiana, Kenya, Ethiopia, Ghana, Côte d’Ivoire, Liberia and Mauritania.

Development and Operations activities

  • $2.9 billion Uganda farm-down completed; significant operational activity has recommenced; conceptual basin development work completed and Government engagement initiated.
  • Jubilee remediation work progressing well; 2012 exit rate expected to exceed 90,000 bopd.
  • TEN project on track for Plan of Development submission in the third quarter of 2012.
  • Jubilee Phase 1A progressing well with first oil expected in the fourth quarter of 2012.
  • Group working interest production averaged 77,400 boepd in the first half of 2012; production for the full year is forecast to average between 80,000 and 84,000 boepd with an exit rate of over 90,000 boepd.

Group financials

  • Record 1H 2012 revenue of $1.15 billion. Net debt at 30 June 2012 was approximately $0.7 billion.
  • Uganda farm-down proceeds have transformed the balance sheet; pre-tax profit on disposal of approximately $700 million.
  • First half capital expenditure of $0.9 billion with forecast 2012 expenditure remaining at $2.0 billion.
  • Exploration write-off and asset value reduction of $440 million expected in the first half of 2012.

COMMENTING TODAY, AIDAN HEAVEY, CHIEF EXECUTIVE SAID:

"Tullow’s industry-leading exploration success has continued in the first half of 2012 with a major discovery in Kenya, the fourth new basin the Group has opened in five years. We have also completed the $2.9 billion farm-down in Uganda, and made good progress on our development projects in Ghana and Uganda. The on-going remediation of the Jubilee field is progressing well and significant exploration wells are planned for the East African Rift basins, the West African Transform Margin and the twin basins in South America in the second half of 2012. With an exciting programme ahead, Tullow is well placed for continued success over the remainder of the year."

Conference Call:

In conjunction with this announcement Tullow has scheduled a conference call at 09:00 today. Details are included at the end of the release.