Acquisition

Tullow Oil PLC
20 December 2004

Press release



Tullow Oil plc
20th December 2004



 Tullow to Acquire Shell and ExxonMobil interests in Schooner and Ketch Fields
                             and Associated Acreage


Tullow Oil, the independent international oil and gas exploration and production
company, announced today that it has entered into agreements with Shell U.K.
Limited and Esso Exploration and Production UK Limited to purchase their entire
producing interests in the Schooner and Ketch gas fields and surrounding
acreage.


Highlights


•         The total consideration, financed through bank debt and internal
resources, is £200 million, inclusive of capital allowances, with an effective
date of 1st July 2004.


•         The Schooner and Ketch fields bring proven producing assets and
major development and exploration upside, strongly enhancing Tullow's strategic
position in the Southern North Sea, and in particular in the Caister-Murdoch
System.


•         The gas initially in place ('GIIP') for the Schooner and Ketch
fields is in excess of 1,500 bcf of which only 350 bcf has so far been
recovered.  Current production is approximately 60 mmscfd gas.


•         Tullow plans a work programme designed to substantially increase
existing production levels with the potential to increase the ultimate recovery
to 50% of GIIP.



Aidan Heavey, Tullow's Chief Executive commented:


'This acquisition of Schooner and Ketch is a step-change for our UK gas
business, adding substantial base production with significant upside potential
and a material offshore operatorship that complements our existing assets in the
Caister-Murdoch System. Following on from the Energy Africa acquisition
completed in late May, the Schooner and Ketch acquisition completes a
transforming year for Tullow, during which the company has concluded over a
billion dollars of transactions.'


For Further Information Contact:


Tullow Oil plc (+ 353 1 213 7300)
Aidan Heavey
Tom Hickey

Citigate Dewe Rogerson ([phone])
Martin Jackson

Murray Consultants ([phone])
Joe Murray




  Tullow to acquire Shell and ExxonMobil's interests in the Schooner and Ketch
                         fields and associated acreage


Tullow Oil, the independent international oil and gas exploration and production
company, is pleased to announce that it has entered into agreements with Shell
U.K. Limited and Esso Exploration and Production UK Limited to purchase their
entire producing interests in the Schooner and Ketch gas fields and the
surrounding acreage.  Subject to necessary consents, Tullow will become the
operator of both fields upon completion.


The total consideration for the transaction is £200 million, inclusive of
capital allowances, with an effective date of 1st July 2004.  The net
consideration payable by Tullow on completion will reflect revenues and costs
accruing to the interest from the effective date.  The transaction will be
financed through a combination of bank debt and internal resources. Completion
is targeted for the first quarter of 2005.


The producing interests to be acquired are a 90.35% interest in the Schooner
field and a 100% interest in the Ketch field.  These fields have been in
production since 1996 and 1999 respectively and currently produce approximately
60 mmscfd of gas, which is transported to the Theddlethorpe terminal via the
Caister-Murdoch System ('CMS') infrastructure in which Tullow has a 17%
interest.


The gas initially in place for the Schooner and Ketch fields is in excess of
1,500 bcf of which only 350 bcf has so far been recovered.  On completion,
Tullow will commence a 3 year development programme, designed to substantially
increase production levels with the potential to increase the ultimate recovery
to 50%.  The work programme will consist of working over and sidetracking
existing wells and drilling new wells to access previously undrained
compartments in the fields.


This acquisition strongly enhances Tullow's already significant acreage position
in this part of the Southern North Sea.  In addition to the producing assets,
Tullow will also acquire minority interests in the Topaz, Marjan, and 44/27-1
discoveries. The acreage acquired also offers attractive exploration upside,
principally from the Schooner Extension prospect, which lies immediately
southeast of the Schooner field.  Tullow plans a fast-track subsurface
evaluation of this prospect and two adjacent blocks that Tullow, as operator,
was recently awarded in the 22nd licensing round.


This transaction transforms Tullow's UK gas business, further consolidates its
position in the CMS core area and enables it to capitalise on its technical
expertise developed through its current ownership of CMS assets. Upon
completion, Tullow will operate over 60% of its UK gas production.




Notes for Editors


A conference call for analysts will be held at 8.30 am UK time.


'Tullow' where referred to in this release means Tullow Oil plc and/or its
subsidiaries, as appropriate.


Tullow Oil plc is one of the leading Independent International Oil & Gas
Exploration and Production companies in Europe.  Tullow is quoted on the London
and Irish stock exchanges (symbol TLW) and is a member of the FTSE 250 Index.


Production and Development Assets


Tullow has interests in over a hundred  exploration and production licences
spread over three core areas:  UK North Sea, West Africa and South Asia.  Tullow
recently completed the acquisition of Energy Africa, bringing the number of
countries in which Tullow is active to sixteen.


In the North Sea, Tullow's principal interests are in the CMS and the Thames/
Hewett group of licences and the Bacton onshore gas-processing terminal on the
Norfolk coast.


Tullow's CMS interests currently include Murdoch (34%), Boulton (9.5%) and CMS
III (14.1%), all of which produce via the CMS infrastructure to the Conoco
operated Theddlethorpe terminal.  Tullow currently receives a tariff from
Schooner and Ketch via its 17% CMS interest for transportation and processing.


In Africa, Tullow has production in Gabon, Cote d'Ivoire, Congo (Brazzaville)
and Equatorial Guinea. Tullow also has exploration programmes in Morocco,
Mauritania, Senegal, Cameroon, Uganda and Egypt.


In South Asia, Tullow has production and exploration interests in Pakistan and
exploration activities in India and Bangladesh, where a three well drilling
programme has just completed in Block 9.


For further information see www.tullowoil.com


                      This information is provided by RNS
            The company news service from the London Stock Exchange