Tullow Reports French Guiana Discovery

- Tullow Reports French Guiana Discovery

Friday, September 09, 2011
Tullow Oil plc

Tullow Oil plc announced Friday that the Zaedyus exploration well (GM-ES-1), offshore French Guiana, has made an oil discovery having encountered 72 meters of net oil pay in two turbidite fans. Results of drilling, wireline logs and samples of reservoir fluids show that the well has encountered good quality reservoir sands on prognosis.

The objective of the Zaedyus well was to test whether the Jubilee-play, successfully established in West Africa, was mirrored on the other side of the Atlantic. This discovery therefore opens a new hydrocarbon basin within which several neighboring prospects have been mapped. This result also reduces the exploration risk associated with Tullow's prospect inventory offshore French Guiana, Suriname and Guyana. An appraisal program and extensive follow-up exploration activities will now be considered.

The Zaedyus well is being drilled in the Guyane Maritime license using the ENSCO 8503 deepwater semi submersible. The well was drilled in water depths of 2,048 meters and has been drilled to a depth of 5,711 meters. Drilling operations will now continue and the well will be deepened to over 6,000 meters to calibrate the deeper geology. The well will then likely be sidetracked to enable cores to be obtained over the reservoir sections.

Tullow (27.5%) operates the Guyane Maritime license and is partnered by Shell (45%), Total (25%) and Northpet (2.5%), a company owned 50% by Northern Petroleum plc and 50% by Wessex Exploration plc.

Angus McCoss, Tullow's Exploration Director, commented Friday:

"The discovery at Zaedyus has proved the extension of the Jubilee-play across the Atlantic and made an important new discovery in French Guiana. Tullow has built a commanding and unique acreage position in South America and this result marks the start of a significant and potentially transformational long-term exploration and appraisal campaign in the region."

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Expro to Provide Integrity System to Tullow Globally

- Expro to Provide Integrity System to Tullow Globally

Monday, August 29, 2011
Expro International Group

Expro is undertaking a contract to provide its SafeWells integrity management software system globally to Tullow Oil Plc.

Expro Well Services has been awarded a contract to provide SafeWells to Tullow in support of centralising Tullow's management of well integrity.

Tullow is a major independent oil company with operations in Africa, Europe, South Asia and South America.

SafeWells has been specifically developed to deliver an effective well integrity management solution. The bespoke software system monitors and reports well integrity performance in real time, highlighting problems and prompting remedial actions as issues arise. It has been deployed successfully by major operators globally.

Like many major oil companies, Tullow's operating environments are diverse and the range of well types equally broad. Over the coming years, the wellstock will include onshore, platform and subsea wells, both oil and gas, with a wide range of flow rates.

A plan was implemented in Tullow's wells engineering department to review the corporate approach to well integrity and put in place a centrally managed well integrity system.

This process would provide management with a retrospective position for the integrity of all wells and effectively 'raise the bar' on the operating standards of all assets. SafeWells is critical to this plan.

The SafeWells implementation process was launched on the Bangora Gas Field in Bangladesh and was followed with UK and Ghana operations.

Simon Copping, Expro client account manager, said, "It is great to see the hard work of the team starting to pay off. We have a fantastic software system in SafeWells that really complements Tullow's well integrity strategy. I'm excited about the future and building on the foundations of the Bangladesh success as we continue to roll the software out to the rest of the business."

Simon Sparke, well integrity focal point of Tullow Oil said, "SafeWells is to be used throughout Tullow and is being rolled out company-wide. With 10 different wells types in challenging engineering and cultural environments, having a software package that was user friendly, flexible and working seamlessly in the background was crucial. So far this product and the team supporting it have fulfilled all my expectations."

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Tullow Touts Record Results in 1H11

- Tullow Touts Record Results in 1H11

Wednesday, August 24, 2011
Tullow Oil plc

Tullow announced its half-yearly results for the six months ended 30 June 2011.

2011 Half-yearly results summary

• Record first half revenue and profit
• Interim dividend doubled
• Exploration success continues and developments being progressed

Tullow had a very strong first half. Record results were driven by increased production from the Jubilee field in Ghana and higher commodity prices. Exploration and appraisal success continued and the Group strengthened its portfolio with farm-ins in East Africa and two strategic acquisitions. Further progress was made in Uganda and Tullow now expects completion of its farm-down to CNOOC and Total in September. In July the Group listed Tullow Oil plc shares on the Ghana Stock Exchange.

Key highlights

• Record sales revenue of over $1 billion driven by Jubilee Production; interim dividend doubled.
• 71% exploration and appraisal success year-to-date (17/24); Akasa-1 discovery announced today.
• Completion of farm-in to six blocks in Kenya and Ethiopia; first well to spud in Kenya in Q4 2011.
• Group production expected to average 82-84,000 bopd for 2011 and exceed 100,000 bopd by year-end.
• Jubilee production in Ghana is expected to increase to 105,000 bopd in October; plateau production of 120,000 bopd is now expected before year-end.
• MoU signed with the Government of Uganda; $2.9 billion Sale and Purchase Agreements signed for the farm-down to CNOOC and Total; completion now expected in September.
• Nuon E&P and EO Group acquisitions completed in June and July respectively.
• Secondary listing on the Ghana Stock Exchange completed in July following successful $72.3 million offer.

Commenting, Aidan Heavey, Chief Executive, said, "We have delivered a strong performance and achieved record results in the first half allowing us to double the dividend. We continue to make good progress with production plans in both Ghana and Uganda and while delays to the farm-down to CNOOC and Total have been frustrating, we now expect completion in September. With a strong balance sheet, growing production and a potentially transformational drilling campaign to come, we move into the second half of the year with real confidence."

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Tullow Acquires Ghanian Interests of EO Group

- Tullow Acquires Ghanian Interests of EO Group

Monday, July 25, 2011
Tullow Oil plc

Further to the announcement made on May 26, 2011 in relation to the conditional acquisition of the Ghanaian interests of EO Group Limited for $305 million, Tullow announced that all of the conditions to the acquisition were satisfied and the acquisition completed today.

This acquisition, with an effective date of 1 December 2010, will increase Tullow’s interest in the West Cape Three Points licence offshore Ghana by 3.5% to 26.4% and increase the Group’s interest in the Jubilee field, which Tullow operates, by 1.75% to 36.5%.

Following the completion, 10,137,196 ordinary shares of 10p each in the capital of Tullow (Shares), are expected to be admitted on July 26, 2011 to the official list of the UK Listing Authority and the official list of the Irish Stock Exchange and to trading on the main markets of the London Stock Exchange and the Irish Stock Exchange. The shares satisfy approximately $216 million of the consideration and the balance, which includes certain working capital adjustments, has been paid in cash.

Following Admission, the total number of Shares in issue is 900,315,402, and the total number of voting rights in the Company is 900,315,402. The Company holds no Shares in treasury.

The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FSA's Disclosure and Transparency Rules.

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Kosmos' Makore-1 Well All Wet

- Kosmos' Makore-1 Well All Wet

Friday, July 15, 2011
Tullow Oil plc

Kosmos' Makore-1 exploration well on the West Cape Three Points Block offshore the Republic of Ghana encountered 37 meters (121 feet) of good-quality Campanian-age water-bearing sandstone reservoirs and 46 meters (151 feet) of good-quality Turonian-age water-bearing sandstone reservoirs. The Makore-1 well was Kosmos' first well in the southeastern portion of the block. The well explored a stratigraphic trap in a Turonian-age fan system.

The Makore-1 well is located 25 km (15 miles) southeast of the company's Mahogany-1 exploration well that discovered the Jubilee Field. The Atwood Hunter semisubmersible rig drilled the Makore-1 well in a water depth of 1,409 meters (4,623 feet) to a total depth of 3,876 meters (12,716 feet). The Atwood Hunter will remain on the block to drill the Akasa-1 exploration well, formerly known as the Dahoma Up-dip prospect. The Akasa-1 well is expected to be spudded shortly.

Kosmos is the operator of the West Cape Three Points Block in which the company holds a 30.875% interest. An affiliate of Anadarko Petroleum Corporation has a 30.875% interest; an affiliate of Tullow Oil plc has a 22.896% interest; E.O. Group Limited has a 3.5% interest; Sabre Oil & Gas Holdings Limited has a 1.854% interest; and the Ghana National Petroleum Corporation has a 10% carried interest.

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Tullow 1H Revenue Seen Boosted By Jubilee, Higher Oil Price

- Tullow 1H Revenue Seen Boosted By Jubilee, Higher Oil Price

Tuesday, July 05, 2011
Dow Jones Newswires
LONDON

Tullow Oil said it expects to post record first-half revenue of $1.05 billion next month, as the London-based explorer continues to ramp up production from its Jubilee field offshore Ghana to 80,000 barrels of crude a day, a 14.3% increase from the level announced last month.

In a trading update, Tullow said first-half working interest production has averaged 75,350 barrels of oil equivalent a day, an 35% increase from the 55,800 boe/day logged in the corresponding period in 2010.

For the full year, Tullow said it expects to produce 90,000 to 94,000 boe/day, more than 50% higher than last year, boosted by new licenses in Ghana and the North Sea acquired earlier this year.

"The performance of our business since the beginning of 2011 has been excellent and we expect to deliver record financial results for the first half of the year," said Chief Executive Aidan Heavey.

Tullow said it expects total first-half revenue of around $1.05 billion, compared with $486 million for the same period in 2010, attributing the sharp rise to higher sales volumes thanks to the contribution of Jubilee, its largest discovery and which is expected to reach plateau production of 120,000 barrels a day in August.

The company's anticipated surge in revenue has also been underpinned by "significantly higher" oil and gas prices, the company said, adding that its oil production sold at an average discount of approximately 2% to Brent during the first half of 2011.

Analysts said while the trading update didn't contain any surprises, it did confirm Tullow's growth program remains on track.

Angus McPhail said it was further evidence "that Tullow is graduating from E&P to integrated player," while Oriel Securities' Richard Rose said its diverse exploration portfolio had "considerable upside potential."

Copyright (c) 2011 Dow Jones & Company, Inc.

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Tullow to Kick Off Next Phase of Ugandan Exploration

- Tullow to Kick Off Next Phase of Ugandan Exploration

Monday, June 06, 2011
Tullow Oil plc

Tullow announced that the Jobi-East-1 and Mpyo-3 wells, in Exploration Area 1 (EA1) onshore Uganda, have both successfully encountered oil in line with pre-drill expectations.

The Jobi-East-1 and Mpyo-3 wells, in Exploration Area 1 (EA1) onshore Uganda, have both successfully encountered oil in line with pre-drill expectations. These wells have successfully calibrated large seismic and gravity data anomalies, which have now been proven as oil accumulations.

Jobi-East-1 has discovered 20 meters of net hydrocarbon bearing reservoir in a fault block adjacent to the giant Jobi-Rii oil field. The well was drilled 4.4 kilometers east of the Jobi-1 discovery well in a down-dip location. Successful logging and sampling operations have confirmed the presence of oil in two zones of high quality reservoir totaling 15 meters of net pay. In addition, gas has also been logged and sampled within sands totaling 5 meters of net pay.

The well was drilled by the OGEC RR600 and reached a total depth of 563 meters. It has been suspended allowing for future re-entry to conduct production testing operations. An accelerated drilling campaign comprising up to four Jobi-East appraisal wells is planned for the second half of 2011 to assess the full extent of this important new oil accumulation.

The Mpyo-3 well has intersected 21 meters of oil bearing reservoir sands at a depth of 340 meters. The well was drilled 1.6 kilometers southeast of Mpyo-1 in a down-dip location within a fault block adjacent to the Mpyo-1 discovery. Successful logging operations confirmed the sands to be of good quality and that they contain highly viscous oil similar to that encountered in Mpyo-1.

The well was drilled by the OGEC IRI-750 to a total depth of 513 meters and was suspended allowing for future re-entry to conduct production testing operations.

Subject to completion of the farm-down, Tullow will have a 33.33% interest in the EA1 license and its partners will be Total 33.33% and CNOOC 33.33%. Tullow is currently acting as interim operator for the license until Sept 2011.

Commenting on Jobi-East-1 and Mpyo-3, Angus McCoss, Exploration Director, said, "The Jobi-East-1 and Mpyo-3 well results mark an excellent start to this next phase of our exploration and appraisal campaign in the Lake Albert Rift Basin. We look forward to many more exciting wells as we endeavor to determine the total oil resource base which will underpin the basin-wide development preparations currently in progress."

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Tullow Lists Shares on Ghana Stock Exchange

- Tullow Lists Shares on Ghana Stock Exchange

Tuesday, May 31, 2011
Tullow Oil plc

Tullow announced its plans for a secondary listing of its shares on the Ghana Stock Exchange (GSE) and an offering of 4,000,000 Tullow shares in Ghana.

The offer of Tullow shares on the GSE will give everyone in Ghana the opportunity to apply for shares in Tullow and to share in the future performance of Tullow's operations across its global portfolio of assets. This listing and share offer further demonstrates Tullow's long-term commitment to Ghana.

The share price for the offer will be announced on Monday, June 13, 2011. Shares can be applied for between June 13, 2011 and July 4, 2011 through Tullow's sponsoring broker, IC Securities (Ghana) Limited or visiting any branch of Standard Chartered or Agricultural Development Bank in Ghana or the office of any of the authorized receiving agents.

Tullow expects to publish a prospectus which further describes the secondary listing and share offer under Ghanaian law on 13 June 2011. Any decision to invest in shares which form part of the offer should only be made on the basis of information set out in that prospectus.

Commenting, Aidan Heavey, Chief Executive, said, "Tullow is fortunate to have played a pivotal role in delivering First Oil from the word-class Jubilee field, offshore Ghana. We would like everyone in Ghana to have the opportunity to invest in the future performance of Tullow, especially as we embark upon further exciting exploration and development activities in Ghana and across our global portfolio. With the support of the Ghana Stock Exchange, the Securities and Exchange Commission and Ghanaian advisers and banks, we are making our shares accessible to anyone in Ghana who wishes to take part in the share offer."

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Tullow to Buy EO Group's Interests Offshore Ghana

- Tullow to Buy EO Group's Interests Offshore Ghana

Thursday, May 26, 2011
Tullow Oil plc

Tullow has entered into a conditional agreement to acquire the interests of EO Group Limited (EO), consisting of its entire interests offshore Ghana, for a combined share and cash consideration of $305 million.

This acquisition will increase Tullow's interest in the West Cape Three Points license offshore Ghana by 3.5% to 26.4% and increase the Group's interest in the world-class Jubilee Oil field, which Tullow Operates, by 1.75% to 36.5%.

Tullow will issue 10,137,196 ordinary shares of 10p each in the share capital of the Company to EO to satisfy approximately $216 million of the consideration. The balance, which will include certain working capital adjustments, will be paid in cash. The number of shares has been determined using an average of the closing share prices and exchange rates for the five business days up to and including May 24, 2011. The receipt of Tullow shares as part of the consideration gives EO the opportunity to retain an indirect interest in the upside potential of all of Tullow's Ghanaian assets.

The effective date of the transaction is December 1, 2010. The agreement is conditional on the receipt of various consents, approvals and assurances, including from the Government of Ghana.

Upon completion of the agreement, application will be made to the UK Listing Authority and the Irish Stock Exchange for the Shares to be admitted to the official list of the UK Listing Authority and the official list of the Irish Stock Exchange and application will be made to the London Stock Exchange and the Irish Stock Exchange for the Shares to be admitted to trading on their respective main markets.

Aidan Heavey, Tullow's Chief Executive, commented, "This acquisition represents an excellent opportunity to extend our interest in these high-quality assets in Ghana. Following our exploration and production successes over the last few years, which culminated in First Oil in late 2010, this purchase further demonstrates Tullow's long-term commitment to Ghana and our belief in its significant remaining potential."

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Tullow Strengthens Portfolio with North Sea Buy

- Tullow Strengthens Portfolio with North Sea Buy

Tuesday, May 24, 2011
Tullow Oil plc

Tullow has entered into an agreement to acquire Nuon Exploration and Production (Nuon E&P) for a cash consideration of €300 million ($421.5 million) from the Vattenfall Group.

The acquisition of Nuon E&P will significantly enhance Tullow's North Sea business adding a portfolio of 25 licenses that include over 30 producing fields, numerous development and exploration opportunities and ownership of key infrastructure. This portfolio will increase the Group's North Sea gas production by 9,000 boepd to approximately 23,000 boepd and add reserves and resources of 28 mmboe.

The Nuon E&P assets are very complementary to the Group's existing Dutch assets and will provide a stronger platform for growth in an area that the Group considers has significant potential. The portfolio includes a number of near term development and exploration opportunities with the potential to sustain and grow production in the short term. The ownership and access to key infrastructure is an excellent strategic fit with Tullow's existing exploration acreage in the area.

The Nuon E&P transaction has an effective date of January 1, 2011 and is expected to complete by July 2011.

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Tullow Strengthens North Sea Portfolio with Nuon E&P Acquisition

- Tullow Strengthens North Sea Portfolio with Nuon E&P Acquisition

Tuesday, May 24, 2011
Tullow Oil plc

Tullow has entered into an agreement to acquire Nuon Exploration and Production (Nuon E&P) for a cash consideration of €300 million ($421.5 million) from the Vattenfall Group.

The acquisition of Nuon E&P will significantly enhance Tullow's North Sea business adding a portfolio of 25 licenses that include over 30 producing fields, numerous development and exploration opportunities and ownership of key infrastructure. This portfolio will increase the Group's North Sea gas production by 9,000 boepd to approximately 23,000 boepd and add reserves and resources of 28 mmboe.

The Nuon E&P assets are very complementary to the Group's existing Dutch assets and will provide a stronger platform for growth in an area that the Group considers has significant potential. The portfolio includes a number of near term development and exploration opportunities with the potential to sustain and grow production in the short term. The ownership and access to key infrastructure is an excellent strategic fit with Tullow's existing exploration acreage in the area.

The Nuon E&P transaction has an effective date of 1 January 2011 and is expected to complete by July 2011.

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Tullow IDs Gas Finds at Tano License

Tullow IDs Gas Finds at Tano License

Wednesday, April 13, 2011
Tullow Oil plc

The Tweneboa-4 appraisal well in the Deepwater Tano license offshore Ghana has successfully encountered gas condensate in good quality sandstone reservoirs. Results of drilling, wireline logs and samples of reservoir fluids have confirmed the western extent of the Tweneboa gas condensate accumulation.

The well, located 3.9 kilometres southwest of the Tweneboa-2 appraisal well was drilled in the western flank of the accumulation to complete the appraisal of the Tweneboa gas-condensate discovery. The well encountered 18 meters of net gas condensate pay in high quality stacked reservoir sandstones which are in static pressure communication with both the Tweneboa-1 and Tweneboa-2 wells.

The Deepwater Millennium dynamically positioned drillship drilled Tweneboa-4 to a total depth of 4,007 meters in water depths of 1,436 meters. On completion of operations, the well will be suspended for future use in field appraisal and development. The rig will then move to perform drill stem tests on the Tweneboa-2 oil and gas-condensate accumulations.

Tullow (49.95%) operates the Deepwater Tano license and is partnered by Kosmos Energy Ghana (18%), Anadarko Petroleum (18%), Sabre Oil & Gas (4.05%) and the Ghana National Petroleum Corporation (GNPC) (10% carried interest).

Uganda exploration and appraisal campaign commences

Following the signing of the SPAs for the farmdown to CNOOC and Total on March 29, 2011, the exploration and appraisal program has been reactivated and two wells are expected to commence drilling in Exploration Area 1 (EA 1) within the next two weeks. The OGEC 600 rig is preparing to spud the high-impact Jobi-East prospect and the OGEC 750 rig is getting ready to drill the first Mpyo exploratory appraisal well to test its upside potential. These wells are the start of a major program of exploration and appraisal drilling, seismic acquisition, and well testing to access the significant remaining upside potential in the basin and further expand the resource base for development.

Commenting, Angus McCoss, Exploration Director, said, "Tweneboa-4 is an important milestone as it is the final well to be drilled in the Tweneboa appraisal program. The upcoming program of well testing in the Tweneboa field, along with drilling and well testing in the Enyenra field, will provide essential information on well deliverability, dynamic reservoir connectivity and hydrocarbon volumes, which will be used to optimize our development plans for these major fields. We are also delighted to be starting drilling activities again in EA 1 in Uganda and are now gearing up for a five-rig drill-out campaign in the second half of the year."

Tullow Sells Uganda Stake to Total, CNOOC for $2.9B

Tullow Sells Uganda Stake to Total, CNOOC for $2.9B

Wednesday, March 30, 2011
Tullow Oil plc

Tullow has signed Sale and Purchase Agreements (SPAs) with CNOOC and Total in respect of the sale of a one third interest to each party of the interests Tullow holds in Exploration Areas 1, 2 and 3A in Uganda. Tullow will retain a one third interest. The terms of the transactions include a total cash consideration payable to Tullow of US $2.9 billion.

With the signing of these SPAs, a key condition of the Memorandum of Understanding (MoU) agreed between Tullow, the Government of Uganda (GoU) and the Uganda Revenue Authority (URA) on March 15, 2011, has been satisfied. The next step is for Tullow to make certain tax related payments to the GoU, on receipt of which all relevant consents become final and the other provisions of the MoU become effective.

Under the MoU, Tullow and its new Partners, CNOOC and Total, have been granted new licenses over EA-1 and an onshore area of EA-3A and the partnership's rights to develop the Kingfisher discovery have been confirmed. A clear plan for the resolution of tax disputes on the various asset sales has been agreed by the GoU, the URA and Tullow.

Tullow and its Partners will now reactivate the significant program of exploration and appraisal drilling and progress their development plans for the basin which they will jointly present to the Government of Uganda for approval.

Commenting, Aidan Heavey, Chief Executive, said, "These agreements have secured the future of oil production in Uganda. Tullow, its partners and the Government of Uganda will now agree a development plan for the Lake Albert Rift Basin with a target of delivering production of at least 200,000 bopd and potentially much more as we continue to explore and appraise the basin. We are looking forward to working with CNOOC and Total, and continuing our strong relationship with the Government to bring the benefits of the oil to the people of Uganda."