Drilling Report

Tullow Oil PLC
23 March 2001


Tullow Oil Plc ('Tullow')

Result of 'K' well, Southern North Sea

Tullow announces a successful natural gas well in the southern sector of the
U.K. North Sea which, when developed, could yield expected future production
of more than 80 billion standard cubic feet of gas.

The operator, Conoco, is now evaluating the accumulation as part of the
Caister Murdoch System III (CMS III) programme of development of five natural
gas fields in the North Sea with the intention of achieving first production
in the fourth quarter of 2002.

The 44/22a-10 gas well lies between the Conoco-operated Murdoch and Caister
natural gas fields in blocks 44/22a and 44/23a, 75 miles (120 kilometres)
north east of Theddlethorpe St Helen, Lincolnshire, England. The co-ventures
are:-Block 44/2a - Conoco (U.K.) Limited, as operator, 54.5 per cent; Tullow
Exploration Ltd, 34 per cent, GDF Britain Limited, 11.5 per cent: Block 44/23
- Conoco (U.K.) Limited, as operator, 30 per cent; Consort Resources Limited,
49 per cent; GDF Britain Limited, 21 per cent.

The Ensco 80 jack-up exploration rig drilled the well in 131 feet (40 metres)
of water between December 2000 and March 2001. It encountered approximately
739 feet (225 metres) of gross pay, 170 feet (52 metres) net, in the
Carboniferous Westphalian formation.

The well was not tested as wireline logs confirmed that the high quality of
the reservoir is consistent with that of others operated by Conoco in the
area.

Aidan Heavey, Chief Executive of Tullow commented:

'The success of our first U.K. offshore well highlights the value that can be
added to our Southern North Sea assets through successful exploration and
appraisal drilling.'

'The K well has the effect of providing Tullow with an immediate reserve
increase and also unlocks further undeveloped fields via the CMS III project.

'This result is the first step in implementing Tullow's strategy of
progressively enhancing the production and reserves of our Southern North Sea
assets. We look forward to working with partners on the development of 'K' and
the drilling planned for the remainder of 2001 on our other assets.'

Further Information:

Aidan Heavey
Chief Executive ([phone]



Tom Hickey
Finance Director ([phone]




Notes to Editors:

        1.     Tullow Oil plc is a UK-domiciled quoted company engaged in oil
        and gas exploration, development and production.

        The Company has been an established upstream operation for 14 years,
        being active currently onshore UK and both onshore and offshore in
        other countries. Tullow's assets cover more than 30 licences in its
        countries of operation, which are Pakistan, India, Bangladesh, Cote
        d'Ivoire, Egypt, the United Kingdom and Romania.

        The Company's shares are listed on the Official Lists of the London
        and Irish Stock Exchanges. The Company has been UK registered since
        December 2000.

        In the UK, Tullow operates in three areas: North Yorkshire, operating
        and supplying gas to a power station; Lincolnshire, where oil is
        produced and sold to a local refinery; and South Yorkshire, operating
        the facilities for a gas storage project.

        At the end of 1999, Tullow's reserves were 33.4 million barrels of
        liquids and 270 billion cubic feet of gas.

        2.     On 31 July 2000 Tullow announced the purchase of a major
        package of North Sea Production interests from BP Amoco Arco for a
        maximum consideration of Stg £201m. At the same time, it also
        announced a placing and open offer to raise approximately Stg £41.8m
        (net of expenses) and signed a loan agreement to provide up to Stg £
        140m in bridge financing. This Bridge facility has since been replaced
        by a Stg £125 million 5 year syndicated Borrowing Base Facility led by
        CIBC World Markets and Bank of Scotland. The purchase from BP is
        through two packages:


      + BP's equity in the Murdoch and Boulton gas fields and the
        Caister-Murdoch System (the subject of this announcement): and

      + BP's equity in the Thames gas field with surrounding satellites, the
        Hewett gas field with surrounding satellites, the associated pipeline
        and terminal interests (to be completed, and a further announcement
        will be made at that time).


        The Completion of the first Package of this acquisition, the
        Murdoch-Boulton Package, was announced on 14 February 2001.

        3.     Net BP production from the fields in the two packages to be
        purchased by Tullow amounts to a current average of some 150 million
        cubic feet of gas a day, with net proven and probable reserves at the
        end of 1999 of 242.6 billion cubic feet.