Interim Results

Tullow Oil PLC
04 September 2003

04 SEPTEMBER 2003                  

                                 TULLOW OIL plc

                              2003 INTERIM RESULTS


Tullow Oil plc, a leading independent international Oil & Gas exploration and
production company, today announced its Interim Results for the period ended 30
June 2003.

HIGHLIGHTS

Financial

•    Turnover up 23 per cent to £67.4 million (H1 2002: £55.0 million) driven by 
     North Sea and offshore West African interests.

•    Operating profit before exploration costs up 48 per cent to £24.9 million.

•    Operating cash flow £46.2 million, a 25 per cent increase on H1 2002.

•    Exploration write-off and higher effective tax charge arising from PRT, 
     impact on Earnings Per Share.

Operational

•    Key strategic position achieved in Southern North Sea gas infrastructure 
     through increased equity interests.

•    Production started at McAdam field in North Sea CMS; further production 
     scheduled to come on stream in the second half.

•    New blocks awarded to Tullow in the UK Government's 21st Offshore Licensing 
     Round.

•    Strong increase in oil production from the Espoir field in West Africa - 
     advanced plans to develop additional proven reserves.

•    Oil discovery at Acajou indicating strong potential of this block and the 
     region.

•    New operated licence with proven oil discoveries, exploration upside and 
     attractive terms awarded in Gabon.

Outlook

•    Gawain South East well in progress.

•    Cote d'Ivoire infill well scheduled for completion over coming weeks.

•    Evaluation of undeveloped discoveries in West Africa and North Sea underway.

•    Three well Exploration drilling in Block 9 Bangladesh to commence November.

•    First well in Gabon scheduled for Q1 2004.

Patrick Plunkett, Chairman of Tullow Oil commented:

'Our strategy of building a low risk exploration and production company with
continual exposure to high returns is progressing well.  We are heading into a
very active phase with exploration wells in each of our three core areas, a
number of potential development projects and continued strong production and
reserve performance.  Acquisition and disposal activity has focussed and
strengthened our portfolio and this will continue as we strive towards our
target over the coming years of building a strong Independent Oil and Gas
Company. '


For further information

Tullow Oil                                                      020 7333 6800
Aidan Heavey, Chief Executive
Tom Hickey, Finance Director

Citigate Dewe Rogerson                                          020 7638 9571
Martin Jackson / Alexandra Scrimgeour / Nina Soon

Murray Consultants                                             + 353 1 498 0300
Joe Murray/Grainne O'Brien


Notes for Editors

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.

Strategy

Tullow's strategy is to build strong and secure cash flow from low risk
production acreage while applying discretionary funds to exploration territories
with high potential. These activities will be undertaken in a manner that
reflects a genuine concern for the environment and the health and safety of all
personnel.

Production and Development Assets

Tullow has interests in 58 exploration and production licences spread over three
core areas:  UK North Sea, West Africa and South Asia.

In the North Sea, Tullow's principal interests are in the CMS and the Thames/
Hewett group of licences and the operatorship of the Bacton onshore gas
processing terminal.  North Sea gas production is expected to average 120 mmscfd
in the current year.

The Espoir field in Cote d'Ivoire, West Africa, is Tullow's principal source of
international production and is currently achieving a production level of 24,000
boepd.  Tullow is also active in Gabon and Cameroon where it has in place fast
track exploration and development programmes.

In South Asia, Tullow has production and exploration interests in Pakistan,
exploration activities in Bangladesh, where an extensive drilling programme is
scheduled, and also in India.


For further information see www.tullowoil.com


                                 TULLOW OIL plc
                              2003 INTERIM RESULTS

CHAIRMAN'S STATEMENT

I am pleased to announce record operating results for the half year ended 30th
June 2003.  Performance was driven by enhanced output from existing fields,
first production from new discoveries and reductions in per unit operating
costs.

Operating Performance

In the North Sea, a strong management team has successfully achieved operating
efficiencies, increased gas output and extended the production life of assets.
This has resulted in an upgrade in reserves across the Group's UK licences
during this half year.

During 2003, Tullow also increased its interests in the Thames, Hewett and Horne
projects in the Southern North Sea by acquiring equity from partners.  This
strengthens Tullow's strategic position in the gas infrastructure for the
region, including operatorship of the Bacton onshore terminal.  Within the CMS
Area, the McAdam field was brought into production during April, with further
production scheduled to come on stream in the second half.  Tullow has also been
awarded 5 new blocks in the UK Government's 21st Offshore Licensing Round.

The outlook is for further strong performance from North Sea interests in the
second half.  Prospects for gas demand and pricing continue to be very positive.
Tullow will also benefit from higher production shares resulting from
additional equity acquired in Thames and Hewett.  Development options on several
other undeveloped discoveries, which can be tied into existing infrastructure,
are also being evaluated.

West Africa is Tullow's fastest and most exciting growth area for both
production and exploration.  Oil production from the Espoir field grew from
7,500 boepd in the first half of last year to an average of c.15,000 boepd in
the first half of this year.  Tullow's share of this production was 3,100 boepd.
This development continues to benefit from strong oil prices.  Plans are well
advanced to develop additional proven reserves in the West portion of the field
and this could see output exceed 35,000 boepd at full production.  A significant
new discovery was made in May when the Acajou 1X well, located 9km from Espoir,
flowed 3,500 bopd of good quality oil. An appraisal well to test potentially
thicker sands in the northern sector of this discovery is planned for the second
quarter of 2004.

During the period, Tullow secured the Kiarsseny Marin licence in the highly
prospective Northern Gabon offshore basin, adding a major new exploration area
to its West African hub.  Priority is being given to drilling an exploration/
appraisal well on a previously undeveloped discovery with the objective of fast
tracking development during 2004.   This is one of three discoveries on the
licence totalling in excess of 30 mmbbl.  Tullow has also identified a number of
other substantial exploration prospects on the block which will be the subject
of further work during 2004.

In South Asia, production continued in Pakistan and advances have also been made
in relation to development of the Chachar discovery. The main focus in the
region is the drilling programme due to commence this year in Block 9,
Bangladesh.

More detail is given on these areas in the Chief Executive's Review.

Financial Results

The principal sources of revenue were the North Sea and offshore West African
interests.  Gas sales volume from the North Sea increased by 27 per cent to an
average of 125 mmscfd and attributable West African production averaged 3,100
boepd.  As a result, Turnover rose by 23 per cent to £67.4 million.

Operating Profit before Exploration Activities increased by 48 per cent to £24.9
million while operating cash flow grew by 25 per cent to £46.2 million.  Capital
expenditure of £23.6 million absorbed 51 per cent of this cash flow, while debt
repayments of £7.8 million were also made during the period.

An exploration cost write off of £5.8 million reflects accumulated costs
associated with unsuccessful wells and licence relinquishments in Algeria (£3.5
million) and the UK (£2.0 million), written off in accordance with Tullow's
Successful Efforts accounting policy.  The balance represents costs associated
with new venture opportunities not pursued.

The charge to taxation of £9.7 million is principally associated with the
Group's North Sea activities.  During the period the Murdoch K field was deemed
liable to PRT.  The current portion of the PRT charge reflects the high
proportion of CMSIII production represented by this field during the period,
however none of the other fields in this development are liable for PRT.

The tax charge also includes a notional tax charge of £1.5 million associated
with profit oil accruing to the Government under the Espoir PSC.

Profits before tax increased by 30.7 per cent to £16.5m after exploration costs
and net interest payments.  The increase in taxation impacted on Net Profits and
Earning Per Share.  As a result net profits were reduced to £6.8 million from
£7.6 million in the same period last year.  Basic EPS was 1.83p and Diluted EPS
1.81p compared with 2.11p and 2.02p for the corresponding period in 2002.

In March 2003 the Company undertook a 5 per cent placing to raise £14.3 million
before expenses.  At the same time, Tullow announced that it had agreed the
principal terms of an acquisition banking facility with an initial committed
amount of $100 million.

Strategy

Tullow's strategy is to build strong and secure cash flow from low risk
production acreage while applying discretionary funds to development and
exploration of high potential acreage. This policy is followed in each of the
Group's core operating areas of the North Sea, West Africa and South Asia.

While this strategy has resulted in a number of attractive bolt-on asset
acquisitions, a more sizeable acquisition also remains a priority.  This is
primarily due to our belief that the current industrial climate in which the
major companies are withdrawing from non-core assets represents a growth
opportunity for independent exploration and production companies. Tullow applies
rigorous assessment criteria to all potential acquisitions with a view to
growing shareholder value at acceptable risk; at a time of high oil prices we
intend to maintain this discipline.

Dividend

In April, Tullow announced its intention to pay a dividend of 1p per share
during 2003. This was subject to certain legal and accounting requirements which
have now been substantially met resulting in a transfer of £12.6 million from
the Merger Reserve to the Profit and Loss Account in the Group Balance Sheet as
at 30 June.  Tullow now anticipates making a formal announcement in relation to
the record date for the dividend during September.  Looking forward, the
principal focus of the Group over the coming years will be on investment for
growth.  Consequently the Board does not anticipate material increases to the
dividend in the near term.

Future Prospects

Our strategy of building a low risk exploration and production company with
continual exposure to high returns is progressing well.

We are heading into a very active phase, with exploration wells in each of our
core areas, a number of potential development projects and continued strong
production and reserve performance.  Acquisition and disposal activity has
focussed and strengthened our portfolio and this will continue as we strive
towards our target over the coming years of building a strong Independent Oil
and Gas Company.

Pat Plunkett
Chairman


CHIEF EXECUTIVE'S REVIEW

UK North Sea:

Tullow's principal interests in this region are the CMS group of licences and
the Thames/Hewett licences. The Group has increased its interests in both areas,
by acquiring additional equity in existing assets and by acquiring new acreage
through the UK Governments 20th and 21st Offshore Licensing Rounds.

Production over the period averaged 125 mmscfd, of which approximately 30 per
cent represented contracted gas. Average prices achieved were 23.1p/therm for
contracted gas and 19.7p/therm for uncontracted gas.  Tariff revenues amounted
to £5.6 million.    Full year production is expected to average 115-120 mmscfd
with lower summer production offset by higher attributable output from an
increased equity stake in Thames/Hewett. The outlook for future gas demand and
pricing continues to be very positive.

CMS Licences: The completion of this major development programme will see a
complex of five new fields ultimately in production.  The McAdam field became
the third of these to come on stream in April and development of the remaining
two fields, Boulton H and Watt, is well advanced.  The addition of the McAdam
production meant that peak production of c.290 mmscfd (Tullow 14.1 per cent),
substantially ahead of initial estimates, was achieved in April.  An additional
block in this area 44/19 was awarded to Tullow in the 21st Licensing Round.

Thames/Hewett: This area has seen three bolt-on acquisitions and a major cost
reduction programme. Tullow increased its equity in the Thames gas fields to
66.66 per cent by acquiring ENI's 23.33 per cent interest.  In addition Tullow
purchased from BP interests in five blocks in the Thames area which increased
its equity in the Horne discovery to 50 per cent.  Tullow is planning an early
development of this field, together with the nearby Wren and Wissey fields in
which it also holds a 50 per cent interest.

In June Tullow entered into agreements with ConocoPhilips which will increase
its equity in the Hewett Unit, the associated export pipelines and the Bacton
onshore gas processing terminal, to 37.82 per cent.  Tullow will also assume
operatorship of these assets, including the Bacton terminal. Tullow has entered
into an alliance with a production operations contractor, Petrofac Facilities
Management Limited, who will become the duty holder for these interests.

The additional Hewett/Bacton assets have been acquired without assumption of any
incremental decommissioning obligations.  During recent months a wide-ranging
review of abandonment cost provisions was undertaken.   This resulted in
downward revisions to abandonment estimates of 28 per cent for the Thames assets
and of 19 per cent for Hewett/Bacton.

These advances, coupled with Tullow's assumption of operatorship in Hewett/
Bacton are expected to enhance the economic life of the Thames/Hewett assets by
enabling Tullow to maintain production and manage costs in a proactive manner.
The potential for development of the Fizzy discovery on Block 50/26b is also
currently being examined. This discovery also extends into Block 49/30b in which
Tullow was granted a 50 per cent interest as part of the 21st Licensing Round.

The Gawain South East exploration well is currently drilling and is expected to
reach reservoir depth shortly. If successful, first production will occur in
November through the Thames infrastructure.

Elsewhere in the North Sea, Tullow was recently awarded a further 3 blocks or
part blocks in the 21st Licensing Round.  The work programme here involves the
reprocessing and acquisition of 3D seismic data with an option to drill or drop.

An exploration well on the Squirrel Prospect in the Outer Moray Firth in March
found a water-wet reservoir and was plugged and abandoned.

West Africa:

Tullow continues to build its asset base in the West Africa hub, an area with
which it has a long standing and successful association. The rapid growth of oil
production in the Espoir field and the successful Acajou 1X discovery well
highlight the exciting potential of our Cote d'Ivoire acreage.  At the same
time, Tullow has embarked on two major new initiatives in the region with the
acquisition of prospective licence areas in both Gabon and Cameroon.

Cote d'Ivoire:  The Espoir field in Cote d'Ivoire is Tullow's principal source
of international production.  During early 2003 a well intervention programme
was undertaken to increase production to a target level of 25,000 boepd (gross).
This programme was successful in achieving a level of 24,000 boepd by the end
of the period. A step-out production well has been subsequently successfully
drilled and is in the process of being completed to ensure that this level is
maintained going forward. Tullow's share of production during the period was
approximately 3,100 boepd at an average realised price of $26.70.  A stock of
approx 110,000 barrels net to Tullow remained on the FPSO at 30 June.

The next phase of the Espoir project will comprise the proposed development of
the West Espoir reserves. This project is likely to take a similar form to the
successful East Espoir development, providing an anticipated 15,000 boepd at
full production.  Production is expected to commence in the first half of 2005.

Gabon:  In March Tullow signed the Kiarsseny Marin licence.  This project is
consistent with Tullow's strategy, already successfully executed in Senegal and
Cote d'Ivoire, of seeking to commercialise previously proven discoveries with
significant exploration upside.  Tullow's principal initial focus will be on
drilling the Topaze South appraisal well, which is expected to be a catalyst for
a fast-track development of the Topaze field during 2004.  Parallel to this
Tullow has identified over 40 prospects and leads on the block, including some
of over 200 mmbbls reserve potential. Further exploration work is planned for
2004.

Cameroon:  The Ngosso block was signed by Tullow and Addax during 2002.  In
common with the Kiarsseny Marin licence in Gabon, a number of existing
discoveries on the Ngosso block provide scope for fast-track appraisal and
development.  A 3D seismic survey to refine reserve estimates and facilitate
development planning will be undertaken in 2004.

South Asia:

Tullow has production and exploration interests in Pakistan and exploration
activities in Bangladesh and India.  An extensive drilling programme is
scheduled for Bangladesh commencing in November.

Pakistan:  The Sara and Suri wells produced at an average rate of approx
10mmscfd net to Tullow (2002-12 mmscfd) during the period, however this has
reduced in recent weeks following water ingress to the Sara-1 well.  A programme
to restore Sara production and a new 3D seismic survey across the Sara/Suri area
is imminent.

Tullow is also continuing its negotiations in relation to the development of the
Chachar discovery.  A gas sales contract is in place and an independent expert
has recently been appointed to consider the likely terms of any unitisation of
Chachar with the adjacent producing Kandhkot field.

Bangladesh:  Following the completion of an extensive seismic programme over
regions of Block 9, drilling locations for 3 exploration wells have been
selected and rig contracts awarded.  The first of three wells is due to spud in
November on the Rasulpur (Kashimpur) prospect, to be followed by the Lalmai and
Bangora structures immediately thereafter.

India:  In March, Reliance Industries announced that the appraisal well on
GK-OSJ-1 (Tullow 25 per cent carried) had been unsuccessful.  Tullow is
currently evaluating the remaining acreage within its India portfolio.

Other Activities:

In addition to its acquisition efforts, the Group optimises its portfolio
through selective farmouts and divestments.  During the period the small West
Firsby producing oil field onshore UK was disposed of.  Further transactions to
improve the group's overall capital efficiency are also under consideration.

ISO 14001:

During the period, Tullow Oil UK achieved certification to the internationally
recognised ISO 14001 environmental standard. This certification is valid for 3
years and its achievement is a tribute to the hard work of our UKCS team and the
consistent commitment to environmental health and safety initiatives within
Tullow.

Outlook

To date, 2003 has been one of the busiest periods of the company's history. The
remainder of the year promises to be similarly eventful including programmes
with potential to add significant value in each of the Group's core areas.  I
look forward to an interesting and exciting period.

Aidan Heavey
Chief Executive


Tullow Oil Plc

Consolidated Profit and Loss Account
Six Months Ended 30th June 2003
                                            6 Months     6 Months    12 Months
                                            30.06.03     30.06.02     31.12.02
                                           Unaudited    Unaudited      Audited
                                            Stg£'000     Stg£'000     Stg£'000

                                              67,441       55,021      112,624
Turnover

Cost of Sales
Operating Costs                              (20,200)     (16,654)     (35,982)
Depletion and Amortisation                   (21,078)     (19,010)     (39,368)
                                             (41,278)     (35,664)     (75,350)

Gross Profit                                  26,163       19,357       37,274

Administrative Expenses                       (1,121)      (2,407)      (3,610)
Depreciation                                    (159)        (152)        (315)
                                              (1,280)      (2,559)      (3,925)

Operating Profit Before Exploration           24,883       16,798       33,349
Activities
Exploration Costs Written Off                 (5,815)      (1,182)      (4,169)
Profit on Farmout of Licence Interests             -        1,033          914

Operating Profit                              19,068       16,649       30,094
Profit on Disposal of Production Assets          452            -            -

Profit on Ordinary Activities Before          19,520       16,649       30,094
Interest
Interest Receivable & Similar Income           1,053          771        1,409
Interest Payable & Similar Charges            (4,075)      (4,800)      (9,044)

Profit on Ordinary Activities Before          16,498       12,620       22,459
Taxation

Taxation on Profit on Ordinary
Activities
Current and Deferred Petroleum Revenue        (3,300)        (721)      (2,696)
Tax
Current and Deferred Corporation Tax          (6,421)      (4,332)      (6,967)
                                              (9,721)      (5,053)      (9,663)

Net Profit                                     6,777        7,567       12,796

                                               Stg p        Stg p        Stg p
Earnings Per Share (Note 2)
- Basic                                         1.83         2.11         3.56
- Diluted                                       1.81         2.02         3.51


Tullow Oil Plc

Consolidated Balance Sheet
As at 30th June 2003
                                             30.06.03     30.06.02    31.12.02
                                            Unaudited    Unaudited     Audited
                                             Stg£'000     Stg£'000    Stg£'000

FIXED ASSETS
Intangible Assets                              45,578       32,684      34,498
Tangible Assets                               156,079      174,399     161,089
Investments                                       371          299         299

                                              202,028      207,382     195,886

CURRENT ASSETS
Stock                                           1,347          814           -
Debtors                                        18,271       19,764      24,535
Cash at Bank and in Hand                       66,143       49,063      44,778

                                               85,761       69,641      69,313

CREDITORS - Amounts falling due within one
year
Bank Loans and Overdrafts                     (30,741)     (21,155)    (27,078)
Trade and Other Creditors                     (31,866)     (32,889)    (26,464)

                                              (62,607)     (54,044)    (53,542)

NET CURRENT ASSETS                             23,154       15,597      15,771

TOTAL ASSETS LESS CURRENT LIABILITIES         225,182      222,979     211,657

CREDITORS - Amounts falling due after more
than one year
Bank Loans                                    (63,425)     (80,386)    (74,923)

Provisions for Liabilities and Charges
Decommissioning Costs                         (41,082)     (42,178)    (32,826)
Deferred Taxation                              (1,825)      (2,655)     (3,608)

NET ASSETS                                    118,850       97,760     100,300

CAPITAL AND RESERVES
Equity Share Capital                           37,774       35,959      35,981
Share Premium Account                          14,245        2,277       2,485
Merger Reserve                                 56,617       69,213      69,213
Profit and Loss Account                        10,214       (9,689)     (7,379)

EQUITY SHAREHOLDERS' FUNDS                    118,850       97,760     100,300



Tullow Oil Plc

Group Cash Flow Statement
Six Months Ended 30th June 2003
                                            6 Months     6 Months    12 Months
                                            30.06.03     30.06.02     31.12.02
                                           Unaudited    Unaudited      Audited
                                            Stg£'000     Stg£'000     Stg£'000

Reconciliation of Operating Profit to Net
Cash Inflow from
Operating Activities
Operating Profit for the Period               19,068       16,649       30,094
Depletion and Amortisation                    21,078       19,010       39,368
Depreciation of Other Fixed Assets               159          152          315
Exploration Costs                              5,815        1,182        4,169
Profit on Farmout of Licence                       -       (1,033)        (914)
Taxation Paid in Kind                         (1,491)           -       (2,014)
Movement in Operating Debtors                  5,021        8,192       (1,947)
Movement in Operating Creditors               (2,111)      (6,479)      (5,806)
Movement in Stocks                            (1,347)        (814)           -
Translation Adjustment                            20            -         (336)
Net Cash Inflow from Operating                46,212       36,859       62,929
Activities

Returns on Investments and Servicing of       (1,995)      (2,345)      (4,070)
Finance

Taxation                                      (5,614)      (1,915)      (5,679)

Capital Expenditure and Financial            (23,254)     (30,547)     (56,251)
Investment

Net Cash Inflow /(Outflow) before
Management of Liquid
Resources and Financing                       15,349        2,052       (3,071)

Management of Liquid Resources - Term          4,446        3,158         (896)
Deposits

Financing                                      1,768       (9,470)     (16,179)

Increase/(Decrease) in Cash                   21,563       (4,260)     (20,146)


Reconciliation of Net Cash Flow to
Movement in Net Debt

Increase/(Decrease) in Cash for Period        21,563       (4,260)     (20,146)
Cash Outflow/(Inflow) from Decrease/           7,806       (1,309)      (3,012)
(Increase) in Debt
Cash (Outflow)/Inflow from (Decrease)/        (4,446)      (3,158)         896
Increase in Liquid Resources

Change in Net Cash arising from               24,923       (8,727)     (22,262)
Cashflows
Translation Difference                           445         (237)         694
Net Debt at Beginning of Period              (95,400)     (73,832)     (73,832)

Net Debt at End of Period                    (70,032)     (82,796)     (95,400)



Tullow Oil Plc

Group Cash Flow Statement (contd)
Six Months Ended 30th June 2003


Analysis of Changes in Net Debt

                              01.01.03     CashFlow     Exchange     30.06.03
                              Stg£'000     Stg£'000     Stg£'000     Stg£'000

Cash at Bank and in Hand         3,722       21,452          (67)      25,107
Overdrafts                        (665)         111          (43)        (597)
                                 3,057       21,563         (110)      24,510

Debt Due Within one Year       (26,413)      (3,940)         209      (30,144)
Debt Due After One Year        (77,987)      11,746          238      (66,003)
                              (104,400)       7,806          447      (96,147)

Term Deposits                    5,943       (4,446)         108        1,605

Net Debt                       (95,400)      24,923          445      (70,032)


Cash at Bank and in Hand at 30th June 2003 per the Group Balance Sheet includes
£25,107,565 of Cash, £1,604,740 of Term Deposits, £29,227,358 on fixed deposit
in support of future decommissioning costs and £10,203,323 on fixed term deposit
under the terms of the debt facility.

Cash at Bank and in Hand at 31st December 2002 per the Group Balance Sheet
includes £3,722,075 of Cash, £5,942,657 of Term Deposits, £25,093,268 on fixed
deposit in support of future decommissioning costs and £10,020,172 on fixed term
deposit under the terms of the debt facility.

Bank Loans due after one year are stated in the Group Balance Sheet net of
related unamortised arrangement fees.


Tullow Oil Plc

Notes to the Interim Financial Statements

1.   Accounting Policies and Presentation of Financial Information

The financial information presented above does not constitute statutory accounts
within the meaning of section 240 of the Companies Act 1985. The financial
information for the year ended 31st December 2002 has been derived from the
statutory accounts for that year. The statutory accounts, upon which the
auditors issued an unqualified opinion, were delivered to the Registrar of
Companies.

There are no changes to the accounting policies as set out on pages 45 to 47 of
the Annual Report and Statement of Accounts for the year ended 31st December
2002.
          
2.   Earnings per Ordinary Share

The Calculation of basic earnings per ordinary share is based on the profit for
the period after taxation of £6,776,655 (first half 2002 - £7,566,737) and a
weighted average number of shares in issue of 370,912,069 (first half 2002 -
358,904,674).

The calculation of diluted earnings per share is based on the profit for the
period after taxation as for basic earnings per share. The number of shares is
adjusted to show the potential dilution if employee and other share options are
converted into ordinary shares. The weighted average number of shares in issue
is increased to 373,677,919 (first half 2002 - 373,734,888).
     
3.   Statement of Total Recognised Gains and Losses

                                         6 Months      6 Months     12 Months
                                         30.06.03      30.06.02      31.12.02
                                        Unaudited     Unaudited       Audited
                                         Stg£'000      Stg£'000      Stg£'000

Profit for period                           6,777         7,567        12,796
Currency translation adjustment on
foreign currency net investments           (1,780)       (2,203)       (5,122)

Total Recognised Gains                      4,997         5,364         7,674


4. Profit and Loss Account

                                         6 Months      6 Months     12 Months
                                         30.06.03      30.06.02      31.12.02
                                        Unaudited     Unaudited       Audited
                                         Stg£'000      Stg£'000      Stg£'000

Opening Balance                            (7,379)      (15,053)      (15,053)
Profit for period                           6,777         7,567        12,796
Currency translation adjustment on
foreign currency net investments           (1,780)       (2,203)       (5,122)
Transfer from the Merger Reserve           12,596             -             -

Closing Balance                            10,214        (9,689)       (7,379)

During the period the Irish subsidiary (Tullow Oil Limited, formerly Tullow Oil
plc) received permission from the High Court of Ireland to transfer a balance on
the share premium account against the deficit on the profit and loss account of
that company. The Irish subsidiary was previously the ultimate parent company of
the group and the balance on its share premium account gave rise to the merger
reserve in the consolidated balance sheet. Accordingly, the transfer from the
Irish subsidiary's share premium account was mirrored in the consolidated
balance sheet by a transfer from the merger reserve.

5.   Dividends

No dividend was declared in the half year to 30th June 2003 or in 2002.


6. Proven and Probable Reserves Summary

                   EUROPE            AFRICA             ASIA                     TOTAL
                Oil       Gas      Oil      Gas     Oil       Gas      Oil       Gas    Petroleum
               mmbo       bcf     mmbo      bcf    mmbo       bcf     mmbo       bcf        mmboe

At 1st         0.06    170.68    19.35    50.45       -    138.74    19.41    359.87        79.38
January
2003
Revisions         -     10.31        -        -       -    (12.67)       -     (2.36)       (0.39)
Disposals     (0.05)        -        -        -       -         -    (0.05)        -        (0.05)
Production    (0.01)   (23.40)   (0.51)   (0.33)      -     (1.87)   (0.52)   (25.60)       (4.79)

At 30th June      -    157.59    18.84    50.12       -    124.20    18.84    331.91        74.15
2003
     
7.   Auditors' Review

The interim accounts (unaudited) have been reviewed by the Group's joint
auditors, Deloitte & Touche LLP and Robert J Kidney & Co.

8.   Approval of accounts

These interim accounts (unaudited) were approved by the board of Directors on
4th September 2003.



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