Tullow Oil plc - Trading Statement and Operational Update

The Operational Update is in respect of recent Production, Development and Exploration activities. The information contained herein has not been audited and is subject to further review.

HIGHLIGHTS

Ghana and Equatorial Atlantic Activities

• Jubilee Phase 1 Plan of Development finalised with the Government of Ghana for formal approval. Development drilling, FPSO conversion and subsea facilities fabrication all on track for 2010 first oil.
• Tweneboa-1 makes a significant discovery, extending the Jubilee play westwards.
  Five potentially transformational exploration and appraisal wells scheduled for 2H 2009; Mahogany-4, Mahogany-Deep-2, Tweneboa-2 and Teak-1 in Ghana and South Grand Lahou in Côte d’Ivoire.
• Farm-in offers received for French Guiana acreage. New 3D seismic surveys reveal large leads offshore Guyana and Liberia. A further two licences are being acquired elsewhere in Liberian Basin.

Uganda Operations

• Current activities are focused on development planning and commercialisation. Detailed evaluation of short-term fuel supply for local power and options for full-scale refining and export has commenced.
• Wahrindi-1 finds oil, extending the Victoria Nile Delta play. New leading edge gravity-seismic technologies are being applied to fully explore and develop this multi-billion barrel basin.
• Ngassa-2 drilling operations are ongoing and oil shows have been encountered. Total Depth is expected to be reached in August.

Group Operations and Financials

• Group working interest production averaged 59,000 boepd for the first half of 2009 and is expected to average approximately 58,000 boepd for the full year.
• First half capital expenditure of £425 million with forecast 2009 expenditure of £700 million.
• Net debt at 30 June 2009 was approximately £435 million.

2009-July-Tullow-Trading-Statement(PDF, 144 KB, opens in a new window)

Commenting today, Aidan Heavey, Chief Executive said:

“In the first half of 2009, Tullow has focused on the exploration, appraisal and development of the Group’s two major growth projects in Ghana and Uganda. This has resulted in significant resource additions in Uganda and the discovery of the potentially transformational Tweneboa field in Ghana. In addition, we have made excellent progress with the Phase 1 development of the Jubilee field and I am delighted to report that this has culminated in the finalisation of the Development Plan with the Ghanaian Government.

“It promises to be an exciting second half of the year with high-impact exploration and appraisal wells in Ghana and Côte d’Ivoire, the result of the significant Ngassa-2 well in Uganda and the development of commercialisation options for the substantial Ugandan resource base. The outlook for Tullow remains very positive.”

Conference Calls

Conference calls hosted by Aidan Heavey (Chief Executive), Paul McDade (Chief Operating Officer), Angus McCoss (Exploration Director) and Ian Springett (Chief Financial Officer) will be held today at 09:30 (BST) and at 15:00 (BST).

To access the calls please dial the appropriate number below shortly before the call and ask for the Tullow Oil plc conference call. A replay facility will be available three hours after the conference call until 14 July. The telephone numbers and access codes are:

Disclaimer

This announcement contains certain operational and financial information in relation to 2009 that is subject to final review and has not been audited. Furthermore it contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil & gas exploration and production business. Whilst the Group believes the expectations reflected herein to be reasonable, the actual outcome may be materially different owing to factors either within or beyond the Group’s control, and accordingly no reliance may be placed on the figures contained in such forward looking statements.

For further information please refer to our website at www.tullowoil.com