Tullow Oil PLC
04 April 2007
Tullow Oil plc - New partner introduced to Kudu project
4 April 2007 - Tullow Oil plc (Tullow) announces that it has reached agreement
to sell Itochu Corporation (Itochu) a 20% interest in its Republic of Namibia
Production Licence No. 001, which contains the Kudu gas field.
To earn the 20% interest, Itochu will pay 40% of the cost of two appraisal wells
to investigate the significant upside potential of the Kudu field. In addition,
under the terms of the transaction, Itochu will make further financial payments
depending on the ultimate volume of reserves developed and will provide Tullow
with beneficial development financing for the project. The transaction is
subject to partner pre-emption rights and Namibian Government approvals.
The objective of the two-well appraisal programme is to establish commercially
productive flow rates from the extensive Kudu East reservoir originally tested
by the Kudu-5 well. If this can be achieved, then a multi-tcf upside potential
will be demonstrated therefore expanding the development options available for
the Kudu field.
The Pride South Seas semi-submersible rig is scheduled to arrive on location at
the end of April and each well is expected to take approximately 80 days to
drill.
Commenting today, Aidan Heavey, Chief Executive of Tullow said:
'We are delighted to welcome Itochu, a strong international partner, to work
with Tullow in the appraisal and development of the Kudu gas field. This is a
very exciting time in the appraisal programme which has the potential to
transform the Kudu asset by significantly increasing the reserve base and open
up a number of additional development options. The successful development of
this asset has the potential to make a very important contribution to Namibia's
long-term power needs and Tullow is committed to sanctioning this project at the
earliest opportunity'.
For further information contact:
Tullow Oil plc Citigate Dewe Rogerson Murray Consultants
(+44 20 8996 1000) (+44 20 7638 9571) (+353 1 498 0300)
Tom Hickey Martin Jackson Joe Murray
Chris Perry
Notes to Editors
Tullow is a leading independent oil & gas, exploration and production group,
quoted on the London and Irish Stock Exchanges (symbol: TLW) and is a
constituent of the FTSE 250 Index. The Group has interests in over 100
exploration and production licences across over 20 countries and focuses on
three principal core areas: Europe, Africa and South Asia.
Tullow's European interests are primarily focused on gas in the UK Southern
North Sea where it has significant interests in the Caister-Murdoch System and
the Thames-Hewett areas and operates over 60% of its production.
In Africa, Tullow has exploration and production in Gabon, Cote d'Ivoire, Congo
(Brazzaville), Mauritania and Equatorial Guinea and a large gas field
development and appraisal programme in Namibia. Tullow also has exploration
programmes in Mauritania, Senegal, Cameroon, Uganda, Congo (DRC),Tanzania,
Madagascar, Angola and Ghana.
In South Asia, Tullow has exploration and production in Pakistan and Bangladesh
and high impact exploration activities in India.
Following the recently completed acquisition of Hardman Resources Limited,
Tullow also has high impact exploration interests in French Guiana, Suriname and
the Falkland Islands.
For further information please refer to our website at www.tullowoil.com
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
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