Final Results

Tullow Oil PLC
12 April 2005


                                 Tullow Oil plc

                  Results for the year ended 31 December, 2004

For further information please contact:

Tullow Oil plc            Citigate Dewe Rogerson           Murray Consultants
+ 44 20 7333 6800         + 44 20 7638 9571                [phone]
Aidan Heavey, CEO         Martin Jackson                   Joe Murray
Tom Hickey, CFO


   Tullow Oil plc announces record levels of production, turnover, operating
                    profitability, cash flow and net profit

12 April, 2005:  2004 was, by any measure, a remarkable year for Tullow Oil.
The Group more than doubled in size, driven largely by the acquisition of Energy
Africa in May.  Combined with sustained high oil and gas prices and good
operational performance throughout the business, the Group delivered a strong
set of results in terms of growth, profits and development.

Tullow Oil plc (symbol: TLW) is an independent oil and gas, exploration and
production Group, quoted on the London and Irish Stock Exchanges and a member of
the FTSE 250.  The Group has interests in over 90 production and exploration
licences in 16 countries worldwide focusing on three core areas of NW Europe,
Africa and South Asia.

2004 HIGHLIGHTS

•         Turnover up 74% to £225.3 m (2003: £129.6 m)

•         Operating profit before exploration activities up 88% to £83.2 m
          (2003: £44.3 m)

•         Basic earning per share up 112% to 6.18p per share (2003: 2.92p per
          share)

•         Dividend per share up 75% to 1.75p per share (2003: 1.0p per share)

•         Operating cash flow up 82% to £154.3 m (2003: £85.0 m)

•         Working interest reserves amounted to 173 mmboe (2003: 70 mmboe)


Acquisitions/disposals

•         Energy Africa, acquired at a cost of US$570 million (£311 million),
          has been successfully integrated and consolidated with effect from 
          28 May 2004. Had these assets been included for the full year, 
          pro-forma turnover for 2004 would have been in the order of 
          £310 million.

•         The acquisition of the Schooner and Ketch producing assets and
          surrounding acreage for £200 million was announced on 20 December 
          2004.  This transaction was completed on 31 March 2005 and the focus 
          is now on integration of these assets and initiation of the 
          redevelopment of the fields.

•         Since year end the Group has reached agreements to sell the non core
          Alba/Caledonia and offshore Congo assets for a combined headline 
          consideration of $184 million (£97 million). This is in line with the 
          Group's strategy of actively managing its portfolio of assets.

Production and Reserves

•         Weighted average working interest production for 2004 was 40,600
          boepd, 62% ahead of 2003 levels, with a geographic balance between NW 
          Europe (52%), Africa (47%) and Asia (1%) and a product balance between 
          oil (56%) and gas (44%). Group working interest production continues 
          to increase, current production is over 56,000 boepd.

•         Energy Resource Consultants Ltd (ERC) performed an independent
          reserves review on Tullow's entire portfolio of assets as at 
          31 December 2004. The results of this review attributed commercial 
          proven and probable reserves of 173 mmboe on a working interest basis. 
          In addition, a further 153 mmboe are recognised as contingent reserves 
          resulting in  Group total reserves of 326 mmboe.

Production and Development

•         The UK Gas market remains a key area of focus for the Group which, in
          2004, made a number of notable advances in exploration, development,
          acquisitions and third party activity.  Tullow now has a portfolio of 
          over 50 North Sea Blocks and, post the integration of the Schooner and 
          Ketch fields and the start up of Horne & Wren, will operate over 60% 
          of its forecast 2005 UK gas production.

•         The combination of the Energy Africa portfolio with Tullow's existing
          African interests has created a diversified pan-African  business.  
          Tullow now has production of over 30,000 boepd in Africa and holds 
          interests in over 40 blocks across 11 countries, including high impact 
          exploration acreage.

•         2004 was a year of transition for Tullow's South Asian portfolio as
          this core area was repositioned in line with the enlarged Group.  
          Pakistan in particular has been an area of renewed focus.  The aim of 
          the Group is to establish a larger exploration portfolio in South 
          Asia, targeting high impact prospects.

•         During 2005 Tullow will actively participate in development activity
          in the UK, Gabon, Congo, Equatorial Guinea, Cote d'Ivoire, Namibia and 
          Pakistan.  Planned expenditure is £100 million, with the primary focus 
          on the UK and West Africa.

Exploration and Appraisal

•         In 2004 the Group had exploration success in Bangladesh, where the
          Bangora-1 exploration well tested gas at an aggregate rate of 120 
          mmscfd gross, and in Equatorial Guinea with the Akom North oil 
          prospect, a satellite to the Okume complex.  The Group drilled 16 
          exploration wells, of which seven were discoveries.  The exploration 
          write-off was £18.0 million for the year.

•         Tullow has approved a total exploration budget of £40 million for 2005
          with the objective of participating in up to 15 wells.  Of those 
          wells, a number remain subject to further technical review and partner 
          approval.

Corporate Social Responsibility

•         Tullow is committed to sustaining environmental and social
          performance. In 2004, an enhanced Environmental, Health and Safety 
          Policy was implemented across the organisation. A CSR Committee with 
          dedicated funding that will report to the Board regularly was 
          established.


2005 OUTLOOK

Looking forward, 2005 will be a year of consolidation and delivery from Tullow's
enlarged portfolio of assets.  The Group has an active programme of development
and exploration that will continue to grow and develop the business.  The
exploration risk-reward profile will be enhanced by farm-outs of licences where
value has been added through geological and geophysical surveys.

At a global level, the market environment and oil and gas prices are expected to
remain strong.  In particular, the fine balance between gas supply and demand in
the UK underpins the Group's view that the current favourable gas pricing
environment in the UK will continue over the coming years.

The $184 million (£97 million) realised from the disposal of non core assets,
combined with a planned consolidation of Group banking facilities during 2005,
leaves Tullow conservatively funded and well placed to continue to pursue its
growth strategy.

GROWTH STRATEGY

Our vision is to be a leading independent oil and gas Group, with a balanced
portfolio of exploration and production assets.  This vision is underpinned by a
consistent growth strategy, the cornerstones of which are a focus on gas in the
UK Southern North Sea and oil in West Africa, with an ongoing appraisal and
development programme in South Asia.

Commenting today, Pat Plunkett, Chairman, Tullow Oil, said:

'In four short years Tullow has increased its production from 2,500 boepd to
over 56,000 boepd.  The significant achievements of 2004 would not have been
possible without the dedication and commitment of our staff, ably led by Aidan
Heavey, and the support and confidence of our shareholders and bankers.  The
challenges and opportunities facing Tullow and our industry in 2005 are exciting
ones and I look forward to reporting further progress to shareholders as the
year unfolds.'

Commenting today, Aidan Heavey, Chief Executive, Tullow Oil plc, said:

'With over $1 billion spent on acquisitions and investments in 2004, the Group
has created a strong portfolio of international exploration, production and
development assets with opportunities for future growth.  Today Tullow has more
than 90 exploration and production licences in 16 countries and the Group's
reserves are over 320 mmboe.  Quality assets, the current expectation of
continued strength in oil and gas pricing and our unique characteristics will, I
believe, continue to deliver long term growth and superior performance.'

CONFERENCE CALLS AND WEBCAST

In conjunction with the Group's results presentation there will be conference
calls and a Webcast today, hosted by Aidan Heavey, Chief Executive of Tullow Oil
plc.  Other senior management participating will be Tom Hickey, Chief Financial
Officer, Paul McDade, Chief Operating Officer and Adrian Nel, Exploration
Director.

9.00 am (BST): Conference Call and Webcast

In the UK/Europe please call [phone] and in Ireland please call +353 1
659 8311.  A replay facility will be available one hour after the conference
call for seven days.  To access the replay facility in the UK/Europe please call
[phone] and in Ireland please call [phone].  The passcode is
4693758.

9.00 am (BST): Webcast

For further information on the Group, these results, and to view the Webcast,
please visit www.tullowoil.com.  An archive of this Webcast will be available
from this afternoon.

2.30 pm (BST): Conference Call

In the US please call [phone] and in the UK please call [phone]
7566. A replay facility will be available one hour after the conference call for
seven days.  To access the replay facility, please call + 1 719 457 0820. The
passcode: 5564780.

2004 RESULTS
For the year ended 31 December 2004

In 2004 the Group reported record levels of production, turnover, operating
profitability, cash flow and net profit. This was principally due to the
acquisition of Energy Africa, combined with sustained high oil and gas prices
during the year.

2004 weighted average working interest production was 40,600 boepd, 64% ahead of
2003 levels. The average realised oil price for the year was $36.99/bbl,
excluding the cost of hedging.  Against the background of net imports of gas
into the UK market, UK gas prices were strong and the average price realisation
for gas was 22.9p/therm (2003: 20.7p/therm).

Record turnover and profitability

Turnover increased 74% to £225.3 million (2003: £129.6 million), reflecting the
Energy Africa acquisition contribution which was consolidated with effect from
28 May 2004. Despite increased UK gas prices turnover of existing operations was
broadly flat as a result of a modest decline in UK production.  Turnover was
reduced by £10.7 million by the realisation of hedge liabilities, including £7.4
million relating to payments in excess of the fair value recognised in the
balance sheet at the Energy Africa acquisition date. Pro forma turnover for 2004
would have been in the order of £310 million had Energy Africa been included for
the full year.

Operating profit before exploration activities increased 88% to £83.2 million
(2003: £44.3 million), benefiting from the increased levels of production and
reduced unit operating costs in the UK and Africa.  This was partly offset by
the write-down of £2.2 million, included in the depreciation, depletion and
amortisation (DD&A) charge, associated with a reserves downgrade in relation to
the Sara and Suri gas fields in Pakistan.

Operating profit increased 107% to £65.2 million (2003: £31.5 million) and
profit before tax increased 143% to £58.0 million (2003: £23.9 million),
including the profit of £2.3 million on the partial sale of licence interests in
Horne & Wren as part of an initiative to balance equity participation and
introduce new partners into the project.

Basic earnings per share amounted to 6.18 pence, an increase of 112% compared
with 2.92 pence in 2003.  Operating cashflow amounted to £154.3 million, an
increase of 82% over 2003, reflecting the quality of the Group's producing asset
base.

Progressive dividend policy

Tullow paid a dividend of 1.0 pence per share for 2003. The Group's policy is to
maintain a progressive dividend, that reflects both the cash generated by the
business and the capital investment and acquisition opportunities available.  A
final dividend of 1.25 pence per share is being recommended by the Board which,
following an interim dividend of 0.5 pence per share, brings the total dividend
for the year to 1.75 pence per share.

Clear and effective corporate governance

The Tullow Board and management are committed to achieving and maintaining high
standards of corporate governance.  This approach ensures that the Board and
management operate within a clear and effective governance framework that
balances all stakeholder interests, including those of shareholders.
Communication and interaction with shareholders, who have provided the Group
with great support this year, is given a high priority and in 2005 Tullow is
creating a dedicated Investor Relations function and undertaking a number of
initiatives to enhance Investor Relations activities overall.

Strengthened Board and Management

In July 2004 David Bamford was appointed to the Board as a non-Executive
Director and in September Adrian Nel of Energy Africa was appointed as an
Executive Director with specific responsibility for Exploration.  Between them,
David and Adrian have over 60 years international exploration experience and
they are instrumental in evolving the exploration strategy and performance of
the Group.

As part of the Group's reorganisation of operations during the year, Paul McDade
was appointed Chief Operating Officer and has responsibility for the management
of the Group's production and development interests worldwide.

During the year, as previously announced in 2003, John Lander and Eskandar
Maleki retired from the Board.  Both John and Eskandar have made significant
contributions to the Group with their dedicated service and commitment.

Consistent growth strategy

The Group's overall growth strategy comprises four principal drivers:

•         Exploitation and expansion of Tullow's current reserve base

•         A combination of developments and 'snuggle' exploration close to
          Tullow's existing infrastructure, balanced with high impact and higher 
          risk prospects

•         Selective acquisitions to complement the Group's existing strong
          footprint within the three core areas of operation in NW Europe 
          (mainly the UK), Africa and South Asia

•         Maximisation and consolidation of Tullow's existing asset base through
          operational innovation and active portfolio management.

Exciting development opportunities

In the UK the Group intends to continue to develop its positions as a producer
and operator in the gas market through a combination of bolt-on acquisitions,
development of fallow fields, 'snuggle' exploration and the expansion of third
party business.  Tullow has the technical and operational expertise to improve
efficiency, returns and overall production. In addition, to exert material
influence the Group targets significant equity participation and aligned joint
venture partnerships.  To enhance performance and cash flow, Tullow aims to
maximise exposure to uncontracted gas production.  This allows the Group the
maximum flexibility in its UK gas marketing activities.

In the Africa core area there are important development opportunities for
Tullow. Within the region there are significant under-explored areas, major
companies are starting to exit the more mature fields and licencing of some
areas and countries has only just begun.  The combined Tullow and Energy Africa
portfolio of assets provides the building blocks to implement and accelerate the
Group's growth strategy in the region.  This strategy is underpinned by strong
relationships with partners and governments and extensive management and
technical know how. The Group also has a material competitive advantage with its
expansive portfolio across a number of countries, giving Tullow a broad and deep
reach to participate where opportunities arise.

In 2004 a review of the South Asia core area determined the future options for
development of this region, within the context of the newly enlarged Group and
the major gas discoveries in Bangladesh during the year.  Given the Group's
history and knowledge of the area, Tullow believes that significant
opportunities exist in South Asia and that further growth can be achieved, inter
alia, by leveraging the Group's extensive acreage where there is major
exploration potential and establishing a larger exploration portfolio with the
objective of drilling high impact prospects.

Active portfolio management

One of the key aspects of the Group's strategy is to actively manage its
portfolio of assets.  Following the Energy Africa transaction, Tullow identified
certain assets as being peripheral to its long term strategy. Agreements have
consequently been reached to sell Alba & Caledonia to Itochu Corporation for a
headline consideration of $112 million (£58 million) and the Groups offshore
Congo assets to Total for a headline consideration of US$72 million (£39
million).

Strong pipeline of activity

Overall, the significant level of achievement in all operations in 2004,
combined with the new organisational structure, delivered increased production
and reserves and provides a strong platform for future growth and development of
the Group. At year end, the production portfolio comprised 25 fields located in
6 countries, with working interest production of over 56,000 boepd.

Looking forward, 2005 will be a year of further consolidation and delivery on
the Group's enlarged portfolio of assets, while continuing to grow and develop
the business.  Tullow has approved a total exploration budget of approximately
£40 million with plans to participate in up to 15 wells. During 2005 Tullow will
also actively participate in development activities in the UK, Gabon, Congo,
Equatorial Guinea, Cote d'Ivoire, Namibia and Pakistan, with planned expenditure
of approximately £100 million.  The operational focus of the production and
development team for the year will be on:

•         Integration of the Schooner and Ketch assets and initiation of the
          field redevelopments planned for the end of the third quarter 2005;

•         Effective and timely execution of key developments of Horne & Wren and
          Munro in the UK, West Espoir in Cote d'Ivoire, Okume Complex in 
          Equatorial Guinea and M'Boundi in the Congo;

•         Completion of the Kudu FEED in Namibia in preparation for project
          sanction;

•         Appraisal of the Bangora and Lalmai discoveries in Bangladesh and the
          sanction of the Chachar development in Pakistan and

•         Continuing to build and diversify Tullow's operating activities both
          organically and through acquisition.

Tullow clearly recognises the risks associated with an increase in operational
activity and the growing diversification of the Group's asset portfolio.
Throughout the organisation there is an ongoing programme aimed at achieving
excellence in the Environmental, Health and Safety aspects of Tullow's
businesses, that considers staff and contractors, local communities and all
external stakeholders.

Positive 2005 outlook

At a global level, the market environment and oil and gas prices are expected to
remain strong.  In particular, the fine balance between gas supply and demand in
the UK underpins the Group's view that the current favourable gas pricing
environment will continue over the coming years.

The $184 million (£97 million) realised from the disposal of non core assets,
combined with a planned consolidation of Group banking facilities during 2005,
leaves Tullow conservatively funded and well placed to continue to pursue its
growth strategy.

The challenges and opportunities facing Tullow and the industry in 2005 are
exciting ones and the Board looks forward to reporting further progress to
shareholders as the year unfolds.

OPERATIONS REVIEW

In addition to the major acquisition programme undertaken in 2004 Tullow
continued to invest for the future in existing assets with expenditure of £97
million on a wide range of operational enhancement and development projects.

Strong platform for growth and development

In 2004 Tullow reorganised and strengthened the Group's operational structure,
integrating the Energy Africa assets and building a strong platform for future
growth and development.  The Group is now structured on a regional basis to run
the enlarged business efficiently and to enhance operational reporting and
accountability.  The new production and development structure has five business
units - UK, Gabon, West African Joint Ventures, Kudu and South Asia - aligned
with the Group's three core areas of operation in NW Europe, Africa and South
Asia.

NW Europe: leading producer and operator in the UK gas market

The Group's interests in NW Europe are almost exclusively in gas in the UK
Southern North Sea.  Tullow also operates two licences in Romania. Overall NW
Europe accounts for 52% of Group turnover and 51% of Group production.

The UK Gas market is a key area of focus for Tullow and the Group intends to
continue to grow as a producer and operator there. While UK gas production
declined modestly during the year, Tullow made a number of notable advances in
exploration, development, acquisitions and third party activity. The Group also
completed its first year as operator of the Bacton/Hewett assets and obtained
sanction of its first offshore development, Horne & Wren. Tullow's entire UK
operations are ISO 14001 certified following certification of the Bacton Gas
Terminal in 2004.

In March, Tullow announced first production from Boulton H, the final
development well in the CMS III project.  In April, the Munro field was
discovered and development is already under way, targeting first gas in 2005.
Tullow was awarded nine Blocks in the UK 22nd Licensing Round and in November
the Department of Trade and Industry sanctioned the development of the Tullow
operated Horne & Wren fields.  In December, the announcement of the agreement to
acquire the Schooner and Ketch producing assets and surrounding acreage
represented a strong finish to the year and a major step in Tullow's strategy of
building a substantial operated UK gas business.

Tullow now has a portfolio of over 50 North Sea Blocks and, post the integration
of the Schooner and Ketch fields and the start up of Horne & Wren, will operate
over 60% of its forecast 2005 UK gas production.

Africa: diversified pan-African oil and gas business

The combination of the Energy Africa portfolio and Tullow's existing African
interests has created a diversified pan-African oil and gas business.  Tullow
now has production of over 30,000 boepd in Africa and holds interests in over 40
blocks across 11 countries, including prospective acreage in Mauritania, Namibia
and Uganda, each of which could add materially to reserves and production over
the coming years. Overall Africa accounted for 47% of Group turnover and 47% of
Group production in 2004.

Within the producing assets progress is particularly encouraging, highlighted by
recent field performance in Gabon, where production has increased substantially
since the Energy Africa acquisition and reserves have also seen a significant
upgrade.  Elsewhere, the M'Boundi field in Congo, the West Espoir field in Cote
d'Ivoire and the Group's acreage in Equatorial Guinea have important ongoing
developments and will show a rising production profile over the coming years.

Major progress has also been made in relation to the commercialisation of the
giant Kudu gas field offshore Namibia via a power generation project.  The joint
development agreement for this field was signed in July 2004 and the partners
are currently focused on financing options and commercial structures to
facilitate a final investment decision.

In addition to the Group's existing interests, the synergy from the combined
knowledge, experience and technical databases of Tullow and Energy Africa has
led to a number of exciting new venture opportunities which are currently under
evaluation.

South Asia: refocused and targeting high impact prospects

2004 was a year of transition for Tullow's South Asian portfolio as the Group
repositioned this core area in line with its enlarged portfolio of assets.
Pakistan in particular has been an area of renewed focus.  The aim of the Group
this year is to establish a larger exploration portfolio in South Asia,
targeting high impact prospects. Currently South Asia accounts for 1% of Group
turnover and 2% of Group production.

The South Asia highlight of 2004 was the discovery of gas by the Lalmai and
Bangora exploration wells in Block 9 onshore Bangladesh.  Tullow has been active
in Bangladesh since 1997, during which time the local gas market has evolved
significantly and there is now considerable regional demand.  As a result, in
consultation with Petrobangla the state gas company, Tullow plans to deliver gas
from Bangora into the market during 2005, while at the same time appraising the
overall reserve potential of the Lalmai-Bangora anticline.

An appraisal of the Group's assets in Pakistan has resulted in the following
decisions: 1) to review the potential for infill drilling in the Sara and Suri
gas fields; 2) not to extend the Sara West licence under the current terms; and
3) to continue the development of the Chachar discovery, where first gas is
expected by early 2006. The Group has also recently been awarded a material new
exploration licence in the Potwar basin.

While there was limited activity in India during 2004, exploration activity will
commence in 2005 on the prospective CB-ON-1 Block in the Cambay basin, which is
on geological trend with a number of regional oil and gas discoveries.

Strength and diversity in reserves

During 2004 Tullow appointed ERC to undertake an independent review of the
Group's oil and gas reserves.

This review attributed 173 mmboe of commercial proven and probable working
interest reserves to Tullow and 150 mmboe net entitlement reserves.  In
addition, ERC also reviewed projects under the contingent category.  Tullow has
153 mmboe in this category, dominated by the Kudu gas project offshore Namibia,
where work on commercialisation is progressing.  This clearly shows the strength
and diversity of the Group's portfolio of assets.

In the UK, production during the year was substantially offset by the addition
of reserves associated with the Horne & Wren and Munro developments.  In Africa
due to the strong development programme undertaken during 2004, reserves
replacement as a whole was over 250%. In South Asia a reserves downgrade on Sara
and Suri gas fields and Sara West reserves resulted in a £4 million charge to
profits in 2004. However the reserves reduction is significantly offset by the
first recognition of reserves associated with the Bangora-1 discovery in
Bangladesh, on which further appraisal is planned in 2005.

Coherent exploration and appraisal programme

Tullow's exploration strategy is to achieve significant growth in its reserve
base at a finding cost appropriate to the various fiscal regimes in which
projects are located and operated.  This strategy has three primary components:

1)      To grow prospect inventories in areas of relatively low risk where
Tullow enjoys a competitive advantage.  These are currently the Southern Gas
Basin of the UK North Sea and Gabon, which account for more than 60% of the
Group's 2004 total production.

2)      To expand prospect inventory in areas with the possibility to deliver
significant reserve growth in the medium term. Tullow will seek equity levels
that could provide net reserves of over 20 mmbbls for individual prospects, in
acreage with upside potential.  Outside of the UK and Gabon the drilling
programme will target higher risk-reward prospects with significant reserve
potential.

3)      To maintain an active new ventures programme and to build a portfolio
capable of yielding significant additional reserves in the future.  To achieve
this, Tullow is aggressively pursuing new opportunities and accelerating work
programmes in currently held acreage in Gabon and Cote d'Ivoire.  The Group is
also targeting further licence agreements in Pakistan and new acreage in the
Ivorian-Ghanaian basin and other countries on the West African margin.

During 2004 Tullow participated in successful exploration wells in the UK North
Sea, Gabon, Congo, Equatorial Guinea and Bangladesh.  However there were also
nine unsuccessful wells.  The exploration write-off cost associated with those
wells was £18.0 million (2003: £12.7 million).  The Group has approved a total
exploration budget of £40 million for 2005 with the objective of participating
in up to 15 wells during the year.

Exploration, by its very nature, carries risk and, in addition to the primary
strategies outlined above, Tullow actively manages its exploration risk by
farming out interests in licences where value has been added through geological
and geophysical surveys.  In 2004 there were various farm- outs which reduced
the Group's financial exposure to exploration in Gabon, Romania and Morocco.
Tullow also balanced its UK portfolio through the partial sale of the Horne &
Wren fields to Centrica plc, for a profit of £2.3 million. In Africa an asset
swap in Gabon improved the production balance and enhanced Tullow's tax position
in that country.

FINANCIAL REVIEW

As outlined above the Group delivered a strong performance in 2004 with
increases across all key performance metrics of production, turnover, operating
profitability, cash flow, net profit and earnings per share.  This was
principally as a result of the Energy Africa acquisition, a steady performance
from the Group's existing operations and the positive global resource and UK gas
price environment. The Group balance sheet also remains strong, with low levels
of net debt.

A strong performance

Turnover grew 74% to a record £225.3 million (£236.0 million before hedging),
compared with £129.6 million in 2003.  Operating profit before exploration costs
increased 88% to £83.2 million, compared with £44.3 million in 2003.  Profit
before tax was up 143% to £58.0 million, compared with £23.9 million the
previous year and net profit grew to £32.9 million up 202% from £10.9 million in
2003.

Improved operating costs of £4.40/bbl (2003 - £4.70/bbl), on a working interest
basis, reflect the continuing drive for operational performance, the shift of UK
production to the lower operating costs CMS area and the lower  operating costs
of the Energy Africa portfolio of assets.

The DD&A charge of £4.68/bbl (2003 - £4.37/bbl), on a working interest basis,
was materially affected by the fair value allocation exercise undertaken post
the Energy Africa acquisition and the write-down associated with the asset
downgrade in Pakistan, which was partly offset by reserve upgrades in relation
to the Group's Gabon and Congo interests.

In line with Tullow's 'successful efforts' accounting policy in relation to the
Group's exploration and development activities a total charge of £18.0 million
was incurred in 2004 (2003: £12.7 million) in relation to nine unsuccessful
wells, along with certain additional costs associated with relinquished acreage
and new ventures.

A lower effective tax rate

The Group's overall effective tax charge, amounting to £25.0 million, was 33.0%
of profit before tax and exploration write-off (2003: 35.3%).  The decrease in
the effective tax rate is due to the fact that the majority of Energy Africa's
production activities are under Production Sharing Contracts, where a portion of
production is shared with the host Government instead of tax.   The value of
such production is no longer reflected in the Profit and Loss Account under the
Group's revised accounting policy for Taxation and Turnover for such
arrangements.

Robust cash flow and financial capacity

Tullow generated £154.3 million in operating cash flow during the year (2003:
£85.0 million) principally driven by the Energy Africa acquisition and stronger
oil and gas pricing.  During the year the Group invested a total of over $1
billion in acquisitions, £69 million on development projects and £28 million on
exploration activities.  Net debt increased to £113.5 million (2003: £62.4
million) reflecting the strength of the Group's financial capacity.

During the year the Group concluded a $300 million Acquisition Bridge Financing
Facility, arranged by ABN AMRO, BNP Paribas and Bank of Scotland. This facility
was principally used to finance the cash component of the consideration paid to
acquire Energy Africa. In addition the Group raised £123.5 million before
expenses through placing 130 million shares at 95p per share.  Following the
acquisitions and growth of recent years, Tullow currently has a variety of
financing facilities in place. During 2005 it is the Group's intention to
undertake a refinancing to substantially replace all of the Group's existing
debt facilities.

Total cash balances at year end were £85.1 million (2003:  £66.7 million).

The net interest charge for the year was £9.6 million comprising £8.3 million
interest and fees payable on Group debt, £3.5 million of interest income and
£4.8 million of non cash costs.

A prudent hedging policy

Tullow's policy is to mitigate the Group's exposure to oil and gas price risk
for a portion of its production using a range of financial instruments.  The
main objectives of the hedging programme are to reduce exposure to price
volatility and particularly downside risk, and to provide substantial assurance
of appropriate levels of liquidity for the Group's various investment
opportunities.  Due to the natural hedge between assets in the UK and Sterling
borrowings and the denomination and funding of the Group's international
business in US Dollars, Tullow does not undertake active currency hedging.

At 31 March 2005 the Group's hedge position to the end of 2005 is as follows:

Oil Hedges                                                1H 05         2H 05          2006
                                                                                       
         Volume - bopd                                   12,983         9,946         7,731
         Average Price - $/bbl*                            36.7          36.0          32.8
         Downside Price - $/bbl**                          34.6          31.4          28.5

Gas Hedges
         Volume - mmscfd                                     46            43            20
         Average Price - p/therm*                          28.4          29.2          36.4
         Downside Price - p/therm**                        26.9          27.0          33.1

*   Average hedge prices are based on market prices as at 31/03/05 and represent the
    current value of hedged volumes
** Downside hedge prices reflect floor price protection

Completed all aspects of the Energy Africa transaction

The Energy Africa transaction, announced in March 2004, was completed with the
consolidation of those assets from 28 May 2004.  Under FRS7 Tullow is required
to undertake a fair value exercise to determine the values attributed to the
acquired assets within the Group's Balance Sheet.  A provisional estimate of
fair value allocation was provided at the 2004 interims. Under the FRS Tullow
are permitted to review this allocation within 12 months, and accordingly the
final fair value allocated to the acquisition of Energy Africa may be summarized
as follows:


                                                                    $ million          £ million
Book value of oil and gas fixed assets                                  343.9              187.6
Market value of hedge contracts                                        (51.8)             (28.3)
Fair value of other net liabilities                                    (82.4)             (45.0)
Fair value adjustment to book values of oil and gas fixed               391.4              213.6
assets
Total acquisition cost                                                  601.1              327.9

Based on the fair value exercise and current production and reserves mix, the
average DD&A rate for the Energy Africa assets is approximately $8.70/bbl, on a
working interest basis.

On track to be fully prepared for IFRS

The Group will adopt IFRS with effect from 1 January 2005 and the 2005 interim
figures will be prepared on the new basis. Comparative figures for 2004 will
also be restated in accordance with IFRS. Tullow has established a project team
that is managing the transition to IFRS and the exercise to restate the 2004
figures has commenced. A restatement of the 2004 balance sheet, including a
reconciliation between UK GAAP and IFRS, will be issued to shareholders in
advance of the interim results which will be published in September 2005. The
project team is also considering the presentation of the Group's results,
systems impacts and the wider business issues that arise from such a fundamental
change.

Tullow's current understanding is that the major effects of changing from the
Group's existing accounting practices to IFRS are likely to be in the areas of
deferred taxation related to business combinations, oil and gas hedges and share
based payments. As Tullow adopts the successful efforts method of accounting for
exploration and appraisal costs it is anticipated that changes in accounting for
fixed assets costs will be comparatively minor.  Tullow is monitoring the
approach adopted by the industry and the Group expects to be fully prepared for
adoption of IFRS.  -oOo-



TULLOW OIL PLC
PRELIMINARY RESULTS FOR YEAR ENDED 31ST DECEMBER 2004

GROUP PROFIT AND LOSS ACCOUNT
                                                           Acquisitions      Existing
                                                                           Operations        Total
                                                                   2004          2004         2004        2003
                                                                                                      Restated
                                                                  £'000         £'000        £'000       £'000

Turnover                                                         98,915       126,341      225,256     129,625

Cost of Sales
Operating Costs                                                (23,781)      (39,719)     (63,500)    (42,621)
Depletion and Amortisation                                     (31,010)      (36,561)     (67,571)    (39,628)
                                                               (54,791)      (76,280)    (131,071)    (82,249)
                                                                 
Gross Profit                                                     44,124        50,061       94,185      47,376
                                                                
Administrative Expenses                                         (3,268)       (7,102)     (10,370)     (2,727)         
Depreciation                                                      (272)         (375)        (647)       (332)
                                                                (3,540)       (7,477)     (11,017)     (3,059)

Operating Profit Before Exploration Activities                   40,584        42,584       83,168      44,317
Exploration Costs Written Off                                   (8,622)       (9,339)     (17,961)    (12,772)
Operating Profit                                                 31,962        33,245       65,207      31,545
Profit/(Loss) on Disposal of Producing Assets                                                2,292       (952)
Profit on Ordinary Activities before Interest                                               67,499      30,593
Interest Receivable and Similar Income                                                       3,458       2,016
Interest Payable and Similar Charges                                                      (12,960)     (8,730)

Profit on Ordinary Activities before Taxation                                               57,997      23,879

Taxation on Profit on Ordinary Activities
Current and Deferred Petroleum Revenue Taxation                                           (10,956)     (9,025)
Current Corporation Taxation                                                               (9,863)     (6,675)
Deferred Corporation Taxation                                                              (4,229)       2,742
                                                                                          (25,048)    (12,958)

Profit for the Financial Year                                                               32,949      10,921
                                                                                           
Dividends                                                                                  (6,995)     (3,782)

Retained Profit for the Financial Year                                                      25,954       7,139

Earnings per Ordinary Share (Note 3)                                                         Stg p       Stg p
-  Basic                                                                                     6.18         2.92
-  Diluted                                                                                   6.11         2.90



TULLOW OIL PLC
PRELIMINARY RESULTS FOR YEAR ENDED 31ST DECEMBER 2004

GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

                                                                                        2004            2003
                                                                                       £'000           £'000

Profit for the Financial Year                                                         32,949          10,921
Currency Translation Adjustments                                                    (19,338)         (5,034)

Total Recognised Gains and Losses for the Financial Year                              13,611           5,887



RECONCILIATION OF MOVEMENTS IN GROUP EQUITY SHAREHOLDERS' FUNDS
                                                                                        2004            2003
                                                                                       £'000           £'000

Retained Profit for the Financial Year                                                25,954           7,139
Currency Translation Adjustments                                                    (19,338)         (5,034)
Equity Shares Issued                                                                 256,547          13,516

Net Increase in Equity Shareholders' Funds                                           263,163          15,621
Equity Shareholders' Funds - At 1st January                                          115,921         100,300

Equity Shareholders' Funds - At 31st December                                        379,084         115,921



TULLOW OIL PLC
PRELIMINARY RESULTS FOR YEAR ENDED 31ST DECEMBER 2004

GROUP BALANCE SHEET


                                                                                   2004            2003
                                                                                  £'000           £'000
Fixed Assets
Intangible Assets                                                               103,312          48,434
Tangible Assets                                                                 495,920         144,333
Investments                                                                         496             496

                                                                                599,728         193,263
Current Assets
Stock                                                                             3,392             437
Debtors                                                                          54,207          26,115
Cash at Bank and in Hand                                                         85,070          66,686

                                                                                142,669          93,238
Creditors - Amounts falling due within one year
Bank Loans and Overdrafts                                                       (5,302)        (27,544)
Trade and Other Creditors                                                     (114,014)        (33,173)

                                                                              (119,316)        (60,717)

Net Current Assets                                                               23,353          32,521

Total Assets Less Current Liabilities                                           623,081         225,784

Creditors - Amounts falling due after more than one year
Bank Loans                                                                    (143,398)        (59,458)

Provisions for Liabilities and Charges
Decommissioning Costs                                                          (70,679)        (47,524)
Deferred Taxation                                                              (29,920)         (2,881)

Net Assets                                                                      379,084         115,921

Capital and Reserves
Called Up Equity Share Capital                                                   64,537          37,784
Share Premium Account                                                           121,656          14,198
Merger Reserve                                                                  178,953          56,617
Foreign Currency Translation Reserve                                           (30,362)        (11,024)
Profit and Loss Account (Note 4)                                                 44,300          18,346

Equity Shareholders' Funds                                                      379,084         115,921






TULLOW OIL PLC
PRELIMINARY RESULTS FOR YEAR ENDED 31ST DECEMBER 2004

GROUP CASH FLOW STATEMENT


                                                                                 2004             2003
                                                           Notes                £'000            £'000

Net Cash Inflow from Operating Activities                    5                154,307           84,960

Returns on Investments and Servicing of Finance              6               (13,053)          (7,533)
Taxation                                                                     (14,497)         (12,261)

Acquisition of Subsidiaries                                                 (166,055)                -

Disposal of Subsidiary                                                          4,730                -

Capital Expenditure and Financial Investment                 7               (95,105)         (42,044)

Net Cash (Outflow)/Inflow before Management of Liquid                       (129,673)           23,122
Resources and Financing

Management of Liquid Resources - Term Deposits                               (10,299)            4,143

Financing                                                    8                143,045          (6,399)

Increase in Cash for the Year                                                   3,073           20,866

Reconciliation of Net Cash Flow to Movement in Net Debt
Increase in Cash for the Year                                                   3,073           20,866
Cash (Inflow)/Outflow from Movement in Debt                                  (65,182)           14,802
Cash Outflow/(Inflow) from Management of Liquid Resources                      10,299          (4,143)

Change in Net (Debt)/Funds resulting from Cashflows                          (51,810)           31,525
Currency Translation Adjustment                                                   710            1,507
Net Debt at 1st January                                                      (62,368)         (95,400)

Net Debt at 31st December                                                   (113,468)         (62,368)




TULLOW OIL PLC
PRELIMINARY RESULTS FOR YEAR ENDED 31ST DECEMBER 2004

GROUP CASH FLOW STATEMENT (continued)


Analysis of Changes in Net Debt                01.01.04       Cash Flow         Exchange        31.12.04
                                                  £'000           £'000            £'000           £'000

Cash at Bank and in Hand                         24,618           2,015            (112)          26,521
Overdrafts                                      (1,055)           1,058              (3)               -
                                                 23,563           3,073            (115)          26,521

Bank loans due within one year                 (26,769)          20,619              848         (5,302)
Bank loans due after one year                  (61,090)        (85,801)             (29)       (146,920)
                                               (87,859)        (65,182)              819       (152,222)

Term Deposits                                     1,928          10,299                6          12,233

Net Debt                                       (62,368)        (51,810)              710       (113,468)


Cash at Bank and in Hand at 31 December 2004 per the Group Balance Sheet
includes £26,520,796 of Cash, £12,233,337 of Term Deposits, £36,236,529 on fixed
deposit in support of future decommissioning costs and £10,079,815 on fixed term
deposit under the terms of the debt facility.

Cash at Bank and in Hand at 31 December 2003 per the Group Balance Sheet
includes £24,617,585 of Cash, £1,927,857 of Term Deposits, £29,750,854 on fixed
deposit in support of future decommissioning costs and £10,389,324 on fixed term
deposit under the terms of the debt facility.

Bank Loans are stated in the Group Balance Sheet net of related unamortised
arrangement fees of £3,521,511 (2003 - £1,911,573).


TULLOW OIL PLC
PRELIMINARY RESULTS FOR YEAR ENDED 31ST DECEMBER 2004

NOTES TO THE PRELIMINARY ACCOUNTS

Note 1 Basis of accounting and Presentation of Financial Information

The financial information set out in the announcement does not constitute the
Company's statutory accounts for the years ended 31 December 2004 or 2003. The
financial information for the year ended 31 December 2003 is derived from the
statutory accounts for that year, which have been delivered to the Registrar of
Companies. The auditors reported on those accounts; their report was unqualified
and did not contain a statement under s237(2) or (3) Companies Act 1985. The
statutory accounts for the year ended 31 December 2004 will be finalised on the
basis of the financial information presented by the directors in this
preliminary announcement and will be delivered to the Registrar of Companies
following the Company's annual general meeting.

The Group has revised its previous accounting policy for Taxation and Turnover
in relation to notional Cote d'Ivoire corporation tax levied under the terms of
the Espoir field Production Sharing Contract (PSC) and deemed settled out of the
Cote d'Ivoire state's share of Espoir production.  Previously, the amount of
Cote d'Ivoire corporation tax settled out of production was treated as Taxation
and also included in Turnover.  Under the revised treatment, this component of
state profit oil is not included in Turnover and consequently is not included
with other taxes, principally cash settled, under the Taxation heading.
Turnover and Taxation for 2003 have been restated to comply with the revised
accounting policy and have been reduced by £2,739,830.  There has been no effect
on net assets or net profit in any period as a result of the change.

Save as discussed above there are no changes to the accounting policies as set
out on pages 51 to 53 of the Annual Report and Statement of Accounts for the
year ended 31st December 2003.

Note 2 Acquisitions

The Energy Africa Limited (Energy Africa) and Energy Africa Gabon Holdings
Limited (EAGHL) acquisition is accounted for under the 'acquisition method' in
accordance with FRS 7 'Fair values in acquisition accounting', whereby the
assets and liabilities acquired are restated to fair value, with any excess of
the purchase consideration over the fair values of the net assets acquired
allocated to goodwill.

The fair value of the purchase consideration of £327,911,243 comprised
132,987,442 Tullow shares issued valued at £135,632,816, using the market price
at the date of acquisition, plus cash consideration and acquisition expenses
amounting to £192,278,427.

The merger provisions of Section 131 of the Companies Act, 1985 applies to the
share consideration amount and results therefore in a transfer of £122,335,483
to the Merger Reserve.

After restating the acquirees' balance sheets at the acquisition date to comply
with the Group's accounting policies, fair value adjustments were applied to
restate oil and gas tangible and intangible fixed assets, stock, and the hedging
instruments acquired to estimated fair values of £402,355,701, £643,356 and a
liability of £28,283,011 respectively.

The fair values of other net liabilities of £45,593,109 materially approximate
their book values, such that no fair value adjustments were necessary. The total
of the fair values of the assets and liabilities acquired matches the purchase
consideration, such that no goodwill arises on the acquisition.


TULLOW OIL PLC
PRELIMINARY RESULTS FOR YEAR ENDED 31ST DECEMBER 2004

NOTES TO THE PRELIMINARY ACCOUNTS (continued)


Note 3 Earnings per Ordinary Share

The calculation of basic earnings per share is based on the profit for the year
after taxation of £32,949,297 (2003 - £10,920,541) and 532,980,261 (2003 -
374,427,152) ordinary shares, being the weighted average number of shares in
issue for the year.

The calculation of diluted earnings per share is based on the profit for the
year after taxation as for basic earnings per share. The number of shares
outstanding is however adjusted to show the potential dilution if employee and
other share options are converted into ordinary shares. The weighted average
number of ordinary shares is increased by 6,042,545  (2003 - 2,071,203) in
respect of the share option scheme, resulting in a diluted weighted average
number of shares of 539,022,806  (2003 - 376,498,355).

Note 4 Profit and Loss Account
                                                                                 2004         2003
                                                                                £'000        £'000

At 1st January                                                                 18,346      (7,379)
Profit Retained for Financial Year                                             25,954        7,139
Transfer from Merger Reserve                                                        -       12,596
Transfer to Foreign Currency Translation Reserve                                    -        5,990

At 31st December                                                               44,300       18,346



Note 5 Reconciliation of Operating Profit to Operating Cash Flows
                                                                                  2004        2003
                                                                                 £'000       £'000

Operating Profit for the Year (Restated)                                        65,207      31,545
Depletion and Amortisation                                                      67,571      39,628
Depreciation of Other Fixed Assets                                                 647         332
Exploration Costs                                                               17,961      12,772
Hedging Contracts                                                                6,997           -
Increase in Stock                                                              (1,721)       (437)
Increase in Operating Debtors                                                 (34,215)     (1,992)
Increase in Operating Creditors                                                 35,349       3,589
Currency Translation Adjustment                                                (3,489)       (477)

Net Cash Inflow from Operating Activities                                      154,307      84,960




TULLOW OIL PLC
PRELIMINARY RESULTS FOR YEAR ENDED 31ST DECEMBER 2004


NOTES TO THE PRELIMINARY ACCOUNTS (continued)

Note 6 Returns on Investments and Servicing of Finance
                                                                                 2004         2003
                                                                                £'000        £'000
                                                                                             

Interest Received                                                               3,436        2,016
Interest Paid                                                                 (9,494)      (5,767)
Dividend Paid                                                                 (6,995)      (3,782)
Net Cash Outflow from Returns on Investments and
Servicing of Finance                                                         (13,053)      (7,533)

Note 7 Capital Expenditure and Financial Investment
                                                                                 2004        2003

                                                                                £'000       £'000
Purchase of Tangible & Intangible Exploration Assets                         (96,592)    (45,951)
Purchase of Tangible Fixed Assets - Other                                       (132)       (235)
Disposal of Tangible Fixed Assets                                                   -       4,339
Disposal of Intangible Exploration Assets                                       1,619           -
Purchase of Investments                                                                     (197)

Net Cash Outflow from Investing Activities                                   (95,105)    (42,044)


Note 8 Financing
                                                                                 2004        2003
                                                                                £'000       £'000

Issues of Ordinary Shares                                                     126,500      14,404
Costs of Share Issues                                                         (5,586)       (888)
Repayment of Loans                                                           (33,437)    (17,334)
Drawdown of Loan                                                               98,620       2,531
Acquisition of Subsidiary - Bank Loans Acquired                              (33,824)           -
Transfer to Restricted Funds Deposit Account                                  (6,176)     (5,027)
Debt Arrangement Fees                                                         (3,052)        (85)

                                                                              143,045     (6,399)


TULLOW OIL PLC
PRELIMINARY RESULTS FOR YEAR ENDED 31ST DECEMBER 2004

NOTES TO THE PRELIMINARY ACCOUNTS (continued)

Note 9 Subsequent Events

Since the balance sheet date Tullow has continued to progress its exploration,
development and business growth strategies.

On 1 April 2005, the Company announced the completion of the acquisition, from
Shell U.K. Limited and Esso Exploration and Production UK Limited, of their
entire producing interests in the Schooner and Ketch gas fields and associated
acreage.  This transaction was first announced on 20 December 2004. The total
consideration for the transaction is £200 million, inclusive of capital
allowances, which has been financed through a combination of bank debt and
internal resources.

On 8 April 2005 the Company signed a Sale and Purchase Agreement ('SPA') to
dispose of its minority interest in the Central North Sea to ITOCHU Corporation
for a headline consideration of US$112 million (£59 million). On the same date
the Company signed an agreement to dispose of its interests in Offshore Congo to
Total plc for a headline consideration of US$72 million (£38 million).

Note 10 Group Reserves Summary (Unaudited)

Proven and Probable Reserves           (Working Interest Basis)


Commercial                       EUROPE             AFRICA              ASIA                    TOTAL
                              Oil       Gas       Oil      Gas      Oil       Gas       Oil       Gas    Petroleum
                            mmbbl       bcf     mmbbl      bcf    mmbbl       bcf     mmbbl       bcf        mmboe

1  Jan 2004                     -    148.60     17.76    37.05        -    128.24     17.76    313.89        70.07
Revisions                  (2.21)      4.08     19.85   (8.14)        -   (30.10)     17.64   (34.16)        11.95
Acquisitions/               18.00     14.78     85.31        -        -         -    103.31     14.78       105.77
Disposals
Production                 (1.19)   (35.51)    (6.85)   (0.90)        -    (1.94)    (8.04)   (38.36)      (14.43)


31 Dec 2004                 14.60    131.95    116.07    28.00        -     96.20    130.67    256.15       173.36


Contingent                    Oil       Gas       Oil      Gas      Oil       Gas       Oil       Gas    Petroleum
                            mmbbl       bcf     mmbbl      bcf    mmbbl       bcf     mmbbl       bcf        mmboe


At 31 Dec 2004                  -    121.80         -   780.60        -     16.20         -    918.60       153.10


Total                         Oil       Gas       Oil      Gas      Oil       Gas       Oil       Gas    Petroleum
                            mmbbl       bcf     mmbbl      bcf    mmbbl       bcf     mmbbl       bcf        mmboe

At 31 Dec 2004              14.60    253.75    116.07   808.60        -    112.40    130.67  1,174.75       326.46


Proven and probable Commercial reserves are based on a Group reserves report
produced by an independent engineer and are defined in accordance with the UK
SORP 'Accounting for Oil and Gas Exploration, Development, Production and
Decommissioning Activities'.  Proven and probable Contingent reserves are based
on both Tullow's estimates and the Group reserves report produced by an
independent engineer.



TULLOW OIL PLC
PRELIMINARY RESULTS FOR YEAR ENDED 31ST DECEMBER 2004

NOTES TO THE PRELIMINARY ACCOUNTS (continued)

Note 10 Group Reserves Summary (Unaudited) (continued)

The Group provides for depletion and amortisation of tangible fixed assets on a
net entitlements basis, which reflects the terms of the Production Sharing
Contracts related to each field. Total net entitlement reserves were 149.99
mmboe at 31st December 2004 (61.26 mmboe - 31 December 2003).

Contingent Reserves relate to reserves in respect of which development plans are
in the course of preparation or further evaluation is underway with a view to
development within the foreseeable future.

Note 11  Dividends

During 2004  the Company paid a 2003 final dividend of  1p per share and a 2004
interim dividend of 0.5p per share, a total dividend of 1.5p (2003 - 1p).  The
Directors intend to recommend the payment of 1.25p per share which if approved
at the AGM will be paid to shareholders in July 2005.

Note 12  2004 Annual Report and Accounts

The Annual Report and Accounts will be posted to all shareholders in due course,
save those who have elected to receive these electronically. Investors willing
to avail of this facility should visit our website (www.tullowoil.com) and
follow the links.


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