Preliminary Results

Tullow Oil PLC
04 May 2004

FOR IMMEDIATE RELEASE
                                                                      4 May 2004

                                 TULLOW OIL PLC

                            2003 PRELIMINARY RESULTS

Tullow Oil plc, the independent international oil & gas exploration and
production company with interests in the UK North Sea, Cote d'Ivoire, Cameroon,
Gabon, Pakistan, Bangladesh, India and Romania, announces its Preliminary
Results for the year ended 31 December 2003.

HIGHLIGHTS

Financial

•   Record Turnover £132.4 million (2002 - £112.6 million) driven by increased 
    North Sea and West African production

•   Operating profit before exploration activities up 41% to £47.1 million 
    (2002 - £33.3 million)

•   Operating cash flow up 35% to £85.0 million (2002 - £62.9 million)

•   EPS of 2.92p (2002 - 3.56p) impacted by increased tax and exploration costs 
    written off

•   Net debt reduced to £62.4 million (2002 - £95.4 million) and total cash 
    balances increased to £66.7 million (2002 - £44.8 million)

•   Disposal of non-core UK Onshore assets

Operational

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

•   CMS III development successfully completed

•   Cote d'Ivoire East Espoir development and infill well programme completed in
    September

•   Cote d'Ivoire oil discovery at Acajou to be appraised in 2004

•   New operated licence awarded in Gabon

•   3 well programme in Bangladesh commenced December

Outlook

•   Proposed $570 million acquisition of Energy Africa and Energy Africa Gabon 
    Holdings to be announced today

•   Encouraging gas shows in Lalmai-3 well, Bangladesh being progressed to 
    testing

•   Monroe exploration success in UK Southern North Sea suspended for future 
    completion

Patrick Plunkett, Chairman of Tullow Oil commented:

'Tullow has emerged from 2003 a stronger and more focused company and the
proposed Energy Africa acquisition announced today would represent a significant
acceleration in the Company's growth. Industry dynamics are continuing to
present exciting opportunities within our core areas, while investors are once
again recognising the benefits that can result from exploration success. I would
like to thank our existing staff and shareholders for their commitment and look
forward to working with the staff and management of Energy Africa as part of the
Tullow Group.'

Enquiries:

Tullow Oil plc                                              020 7333 6800
Aidan Heavey                        Chief Executive
Tom Hickey                          Chief Financial
                                    Officer

Citigate Dewe Rogerson                                      020 7638 9571
Martin Jackson

Murray Consultants Limited                                  [phone]
Joe Murray

                                 TULLOW OIL PLC

                            2003 PRELIMINARY RESULTS

Chairman's Statement 2003

During 2003, Tullow continued its strategy of growing its production base in its
core areas through re-investment in exploration and development activities and
suitable acquisitions. We have streamlined our presence in non-core regions,
selling or farming out interests in order to focus financial and management
attention on the core areas of Offshore UK, West Africa and parts of South Asia.
This focus has been further emphasised by the Company's announcement of its
intention to acquire Energy Africa Limited whose portfolio includes producing
and exploration assets offshore UK and throughout Africa.

UK Offshore

The UK Gas Market is currently going through a period of transition with
declining indigenous supply struggling to keep pace with market demand and
growth. This has led to generally higher pricing for uncontracted gas,
particularly during periods of peak winter demand, and an increasing focus on
gas imports, LNG, storage and other alternatives. During 2003, Tullow attained a
number of major operational and strategic milestones in the Southern North Sea
(SNS), including the assumption of operatorship of the Hewett fields and the
Bacton terminal. This transaction, coupled with further deals on Thames fields,
Horne and Wren discoveries and more recently on Orwell field, leaves Tullow
ideally placed to benefit as the market continues to evolve.

West Africa

During 2003, Tullow designated West Africa as a key region for future growth.
The Group's objective is to combine our commercial and technical skills to
target existing smaller discoveries that can be successfully developed through
the negotiation of suitable terms and the application of new technology. This is
complemented by an active focus on exploration upside within the region. The
Espoir project, where previously marginal assets have been enhanced through new
technology and exploration success, represents a template for this strategy.

The proposed acquisition of Energy Africa Limited and Energy Africa Gabon
Holdings Limited represents a quantum leap in Tullow's long term strategy for
this region and, upon completion, will bring Tullow's West African production to
over 30,000 boepd.

South Asia

Tullow will drill a number of interesting prospects in South Asia during 2004.
In Bangladesh we have to date drilled two wells from the committed three well
programme within Block 9, while in Pakistan a further well on the Nawabshah
licence is planned. The gas market in South Asia continues to improve and any
gas discovered should be readily marketable.

Corporate Activity and Corporate Governance

In recent years Tullow has devoted significant time and effort to the
development of its Environmental, Health and Safety procedures. In 2003 there
were significant advances in this area with the certification under the
internationally recognised ISO 14001 Environmental Standard of Tullow Oil UK's
activities and its operatorship of the Hewett Complex and Bacton Terminal. This
achievement was the result of outstanding commitment to Health and Safety
throughout the Tullow organisation and I would like to congratulate all
involved.

In April 2004 John Lander and Eskandar Maleki retired from the Board. During his
time with the company John has been the guiding force in the growth and
innovation of Tullow's UK business. Eskandar has been a director of Tullow since
1997 and his contributions to the Board have always been incisive and valuable.
I would like to thank both John and Eskandar for their contribution and
commitment.

The Nominations Committee is currently in the process of selecting an
experienced non-Executive Director and hopes to make an announcement over the
coming months.

Dividend

In April Tullow announced its intention to pay a dividend of 1p per share during
2003. Following approval from the Irish High Court and completion of certain
accounting work, this dividend was paid in November. The level of dividend will
be maintained at 1p per share in 2004. However, it remains the Company's
intention to increase dividend payment levels as circumstances permit.

Corporate Transactions

On 26 March 2004, Tullow announced that it had secured an exclusive position
with respect to the potential acquisition of Energy Africa Limited. In this
regard a formal offer to acquire Energy Africa and a proposed Placing of new
Tullow shares to raise £123.5 million before expenses are to be announced today.
In a separate transaction, Tullow will also acquire the 50% interest in Energy
Africa Gabon Holdings Limited not currently owned by Energy Africa.

The proposed transaction represents a major advance in Tullow's plans to become
a sizeable independent Exploration and Production company. Energy Africa is
regarded as a well-managed company with solid production and exposure to some of
the most exciting exploration and development projects in West Africa, while the
acquisition of the additional Gabon interests increases financial and
operational flexibility in a key territory.

Future Prospects

Tullow has emerged from 2003 as a stronger and more focused company and the
proposed Energy Africa acquisition announced today will represent a significant
acceleration in the Company's growth. Industry dynamics are continuing to
present exciting opportunities within our core areas, while investors are once
again recognising the benefits that can result from exploration success. I would
like to thank our existing staff and shareholders for their commitment and look
forward working with the staff and management of Energy Africa as part of the
Tullow Group.

Patrick Plunkett

Chairman

4 May 2004



Chief Executive's Review 2003

Tullow continued to develop and evolve its strategy during 2003, focusing on
building strong and secure cash flow from low risk production acreage while
applying discretionary funds to exploration territories with high potential.
Since year end, we have further broadened our focus and strategy via the
proposed acquisition of Energy Africa Limited, which has extensive operations in
the West Africa and the UK. During the year Tullow completed two major
developments, drilled six exploration wells, and was awarded six new licences,
while the Group's production increased to over 25,000 boepd.

UK Offshore

Tullow's net UK Gas Sales averaged 120 mmscfd during 2003, an increase of 20%
over the previous year. This performance was driven by the ongoing success of
the CMS III project where production commenced from the McAdam and Watt gas
fields in April and November respectively. The fifth and final field in the CMS
III development programme, Boulton H1, came on stream in March 2004 at a gross
rate of 125 mmscfd. CMS III has been a major success for the consortium and
represents a clear template for future development of smaller gas accumulations
using existing infrastructure.

In October the company completed a deal with ConocoPhillips, which resulted in
Tullow increasing its interest in, and assuming operatorship of, the Hewett Unit
and the onshore Bacton Gas Terminal. Bacton is a strategic site for Tullow and
for the UK gas market as a whole. This transaction gives Tullow the ability to
take the lead in securing third party business, undertaking cost reduction
initiatives and progressing potential gas storage projects in the Hewett area.
In November, Tullow acquired additional equity in the Thames gas fields from
Eni.

While UK exploration performance was mixed in 2003, the recently announced
Monroe discovery was most encouraging and Tullow intends to maintain an active
exploration programme in the UK. The Company was awarded five blocks in the 21
Offshore Licensing Round. The awards comprise operatorship and interests in
three Central North Sea blocks, close to existing production infrastructure, and
interests in two SNS blocks - 44/19, which lies close to the Caister Murdoch
infrastructure, and 49/30b, which contains an extension of the Fizzy gas
discovery.

West Africa

Cote d'Ivoire

The Espoir field and the CI-26 licence area continue to add value to Tullow. In
May the company announced a significant oil discovery on the Acajou prospect,
southeast of Espoir, confirming the hydrocarbon potential of the surrounding
area. A further well will be drilled on the northern portion of the structure
during 2004, following which development options will be assessed.

In September the drilling phase of the East Espoir Development completed,
resulting in increased gross production from the Espoir complex to over 25,000
boepd.

The field co-venturers agreed the West Espoir Development plan in October 2003,
and the award of contracts is imminent. When complete, this project will
increase Cote d'Ivoire gross oil production by 10,000 bopd and bring gross gas
sales to 35 mmscfd.

Gabon Award

In March Tullow signed a Production Sharing Contract with the Gabonese
Government for the Kiarsseny Marin Area. Since the award, Tullow has brought new
partners into the licence - including the Angolan national oil and gas company,
Sonangol P&P, in their first international venture - and drilled its first well
on the Topaze prospect. While the result of the well was disappointing, this
remains a highly prospective block with a number of material exploration plays
and a further well may be considered during 2004.

The proposed acquisition of Energy Africa and related acquisition of 50% of
Energy Africa Holdings Gabon strengthens Tullow's commitment to developing a
long-term business in Gabon over the coming years.

Cameroon

During 2003 a detailed technical review of the existing discoveries and
prospectivity of the Ngosso licence was undertaken. Delineation seismic is
currently planned for 2004.

South Asia

Pakistan

Production continued in Pakistan at a lower level due to the watering out of the
Sara-1 well. Workovers during the year have restored gross production to 20
mmscfd. In the last quarter of 2003 Tullow completed a 3D seismic survey to
delineate potential development and exploration well locations.

Bangladesh

Exploration activities in Bangladesh during 2003 centred on seismic
interpretation and the identification and preparation of well locations within
Block 9. Drilling operations commenced in December with the first well of a
three well programme. This well, on the Rasulpur structure, was unsuccessful. A
second well, on the Lalmai prospect, spudded in March 2004 and reached total
depth on 25 April. The well encountered a number of potentially gas-bearing
zones and, following difficulties in completing the logging programme, Tullow
has initiated production testing.

India

Activity in India during 2003 was limited. A well on the GK-OSJ-1 licence, in
respect of which Tullow had a full carry, was drilled in March , but was
unsuccessful and, following detailed analysis, the block was relinquished at
year end. A further licence covering Block KG-ON-1 was also surrendered in
August. Attention has now shifted to the potentially highly prospective CB-ON-1
block, which lies directly on trend with recent significant oil discoveries.

Increased Focus on Core Areas

In April Tullow sold its interest in the West Firsby oil field in Lincolnshire
to Europa Oil and Gas, and in October completed the $8.3 million sale of its
remaining onshore UK properties to Viking Petroleum. These disposals, along with
the recent farmout of part of Tullow's Romanian interests, and the Company's
withdrawal from Algeria, are intended to allow the Group to focus on its core
investment areas of the UK Offshore, West Africa and parts of South Asia. Our
recent announcements relating to Energy Africa accentuate this focus.

Aidan Heavey

Chief Executive

4 May 2004



Financial Review - 2003

2003 was a year of solid financial progress for Tullow. The group reported
record levels of production, turnover, operating profitability and cash flow
although net profit was adversely impacted by the write-off of costs associated
with unsuccessful exploration under the group's successful efforts accounting
policy and taxation. The Company declared its maiden dividend of 1p/share, which
was paid in November. Significant advances were also made in relation to
reducing abandonment cost estimates on UK assets, and the disposal of non-core
UK onshore production interests. These events, combined, have left the group
well placed to continue its progress during 2004.

Turnover

The UK Southern North Sea assets continue to represent the majority of Group
turnover, accounting for some 79% of the 2003 total (2002 - 81%). Gas sales in
2003 totalled 43.8 bcf representing an average of 120 mmscfd. This was some 19%
ahead of 2002, driven principally by additions to production in the
Murdoch-Boulton area via the CMS III project. Tariff income also benefited from
stronger production, reaching £10.8 million (2002 - £9.7 million). During 2003
Tullow terminated a number of its long-term gas sales contracts in order to
better manage production during period of peak demand and pricing. As a result
of this, contracted gas fell to 20% of overall production (2002 - 60%) at an
average price of 24.7p (2002 - 23.7p), with uncontracted gas representing the
balance at an average price of 19.85p/therm (2002- 20.1p). While the overall gas
pricing environment and outlook is currently favourable, 2003 pricing was
negatively impacted by weak summer and autumn pricing.

In addition to strong performance from the SNS assets, 2003 also saw major
production increases from West Africa, where the Espoir project reached full
production in September 2003. Turnover from Espoir was £25.1 million (2002 -
£14.5 million) from production which averaged 4,000 boepd net to Tullow. Espoir
turnover was also impacted positively by the strength in global oil pricing,
with the price received averaging $27.50/barrel (2002 - $26.60/barrel).

Production from the Sara and Suri fields in Pakistan was adversely impacted by
the water ingress into the Sara-1 well and reduced customer demand in the last
quarter. Average production for the year was 8 mmscfd net to Tullow (2002 - 10
mmscfd).

During 2003 Tullow sold its UK onshore production interests in the West Firsby
oil field and the North Yorkshire Gas fields.

Operating Profit

Operating Profit before Exploration Activities amounted to £47.1 million (2002 -
£33.3 million) showing the benefits of increased overall Group production and
reduced unit operating costs in both the UK and West Africa. SNS Operating
Costs, which include tariff costs, totalled £34.6 million (7.9p/therm) while
Depreciation and Amortisation charges for the UK assets totalled £33.7 million
(7.7p/therm). These costs include transition and acquisition costs of £1.4
million associated with Tullow's acquisition of an additional interest in, and
operatorship of, the Hewett Bacton complex and £0.8 million associated with
termination of the Boulton gas sales contract. During 2003 Tullow also modified
the basis on which Depletion and Amortisation on the SNS assets is computed to
standardise the approach across the main producing hubs of Thames, Hewett and
CMS. This modification, whereby individual reservoirs are now grouped into
'fields' based on common geological characteristics, resulted in a net reduction
of £4.5 million in the charge for the year. The unit Depletion and Amortisation
charge also benefited from reductions in abandonment cost estimates of
approximately 30% on the Thames and Hewett assets. Tullow, as operator of
Hewett, will continue to pursue further reductions in these costs on behalf of
the joint venture.

Espoir Operating Costs, which are substantially fixed, totalled £6.2 million
during 2003.

Tullow's 'successful efforts' accounting policy requires that all costs
associated with unsuccessful exploration are written off to the Profit and Loss
Account. During 2003 Tullow participated in a number of unsuccessful wells in
the UK (Gawain South East and the Squirrel wells), Algeria (Block 222b) and
India (GK-OSJ-1). All costs of these wells, along with certain additional costs
associated with relinquished acreage in the UK and India, have been written off
in full, resulting in a total charge of £12.7 million to the Profit and Loss
Account (2002 - £4.2 million).

Disposal of Non-Core assets

During 2003 Tullow undertook an active programme of rationalisation of assets
and territories that are no longer central to the group. As part of this
initiative the Group withdrew from Algeria following the unsuccessful 222b
exploration well. In addition the groups remaining Onshore UK interests in West
Firsby and North Yorkshire were sold for a total consideration of $9.0 million
(£4.3 million, after completion adjustments). Although these funds were
principally reinvested in international development and exploration activities
which are dollar-denominated, exchange movements between the agreement and
completion dates have resulted in a loss of £0.9 million being booked to the
Profit and Loss Account for 2003.

Interest Charge

The net interest charge for the period was £6.7 million, comprising £3.9 million
of interest associated with Group Debt (after capitalisation of £0.9 million
associated with development projects), £2.0 million of interest income and £4.6
million of non-cash costs arising from the amortisation of Debt arrangement fees
and the unwinding of discount on abandonment provisions and £0.2 million in
respect of interest rate swaps. Of this total, £0.6 million represents
additional amortisation of arrangement costs of the Group's Espoir financing
facility. This facility will now be repaid on an accelerated schedule in
conjunction with the arrangement of new Group facilities associated with the
proposed acquisition of Energy Africa Limited and accordingly the costs are
amortised on an accelerated basis.

Taxation

The tax charge of £15.7 million includes £13.6 million of current Corporation
Tax and Petroleum Revenue Tax (PRT), £2.9 million of a notional tax charge
representing the Cote d'Ivoire state's profit oil interest in 2003 production
from the Espoir field and a net credit of £0.8 million in respect of Deferred
Taxation.

There has been a material increase in the Group's charge to PRT in 2003 due
primarily to a full year of production from the Murdoch K field (part of CMSIII
development), which falls within the determination of the Murdoch field for PRT
purposes. This factor combined with reserves upgrades on Murdoch, lower
available oil allowance and higher gas prices during 2003, resulted in
significant increases in the Group's charge to PRT.

2003 was also the first full year in which the additional 10% Supplementary
Corporation Tax on Oil and Gas profits applied. Tullow's exposure to this tax
during 2003 was mitigated by the availability of 100% capital allowances on UK
exploration and development costs incurred during the year. In addition, the
Group also received a rebate on taxes due of £2.7 million in respect of
Corporation Tax over-assessed in previous years, principally associated with the
timing of 2002 profits and consequent liability to SCT.

Cash Flow

Tullow generated a total of £85.0 million (2002 - £62.9 million) in operating
cash flow. This record operating cash flow allowed the group to spend a total of
£46.0 million on exploration and development activities whilst also making net
repayments totalling £14.8 million under its financing facilities. During 2003,
Tullow also declared and paid its first dividend and completed 3 bolt-on
acquisitions to its SNS portfolio.

Development expenditure in 2003 was associated with the East Espoir and CMS III
projects, which were both substantially complete at year end. The outlook for
2004 is for a lower level of development expenditure, with the Horne and Wren
(UK) and West Espoir (Cote d'Ivoire) projects likely to be the main areas of
focus in Tullow's current areas of activity.

Tullow participated in a total of 6 exploration wells during 2003. The key areas
of exploration expenditure were in the UK where the Squirrel and Gawain South
East wells were drilled, Cote d'Ivoire where Tullow participated in the Acajou
discovery and South Asia where exploration work continued on Block 9 onshore
Bangladesh and the Rasulpur well was spudded in December 2003.

At 31 December 2003 the group held total cash balances of £66.7 million, of
which £29.8 million was held as security for future decommissioning obligations.

Balance Sheet

Tullow fully applies the requirements of the Statement of Recommended Practice
'Accounting for Oil and Gas Exploration, Development, Production and
Decommissioning Activities'. Under its successful efforts accounting policy, the
group capitalises all costs of exploration and related activities to the
Intangible Fixed Assets caption of the Balance Sheet pending determination of
commerciality. During 2003, costs of the Group's exploration and appraisal
activities in the SNS, Cote d'Ivoire, Cameroon, Gabon, Romania, Bangladesh,
Pakistan and India were capitalised as Intangible Fixed Assets.

Upon determination of commerciality, costs are transferred from Intangible to
Tangible Fixed Assets. The reduction in Tangible Fixed Assets during 2003
principally arises from Depletion and Amortisation of £39.6 million offset by
development expenditure totalling £32.0 million, the disposal of UK onshore
assets and currency translation adjustments in respect of US Dollar denominated
activities.

Liquidity and Financial Management

The Group's core financial objectives are to increase operating profitability
and cash flow so as to enable active exploration and development programmes to
be pursued while at the same time reducing group gearing. In addition, the Group
places a high priority on retaining financial flexibility in order to enable
business development opportunities to be pursued as they arise. During 2003
Tullow undertook a 5% Placing to raise £14.4 million (before expenses) to
supplement an acquisition-related debt facility which was negotiated during the
first quarter.

Net debt reduced by £33.0 million during 2003, as net repayments totalling £14.8
million were made, principally under Tullow's SNS related debt facility; since
31 December further repayments totalling £15.0 million have also been effected
and the life of the SNS debt facility extended to reflect additions to reserves
and extensions of field lives since first drawdown in 2001.

During 2003 the first phase of the Espoir development satisfied all completion
tests under the related $15 million Cote d'Ivoire banking facility, which is now
fully non-recourse to Tullow Oil plc. The first repayment under this facility
was made in January 2004 and it is anticipated that the facility will be fully
repaid in conjunction with the arrangement of a debt funding package associated
with the proposed acquisition of Energy Africa Limited. The International
Division's revolving $15 million Corporate Facility has recently been extended
and will not be affected by the proposed arrangements.

Financial and Derivative Risk

Tullow does not assume speculative derivative or hedge positions; all group
hedging and forward sales are undertaken with the sole intention of safeguarding
group revenue and managing exposure to seasonal and annual resource price
volatility. During 2002 and 2003 Tullow has progressively reduced the proportion
of its gas that is sold under life-of-field contracts and active gas marketing
and forward sales remains a high priority. The principal sales contract
termination during 2003 related to the Gawain field, which supplied gas to
PowerGen at Bacton - this contract has effectively been replaced by a term
supply agreement. In addition the Boulton life-of-field gas contract was also
formally terminated in early 2003, providing the Group with exposure to
prevailing market prices compared to the below market price under the
life-of-field contract. The fundamentals of UK Gas pricing continue to be strong
and at 31 March 2004 Tullow had achieved an average price of 24.5p/therm for
uncontracted gas sold to date in 2004.

The Espoir project attained its threshold level of production during 2003. In
recognition of this, Tullow has initiated a limited programme of oil price
hedging covering approximately 30% of anticipated 2004 production utilising a
mix of swaps and put options with an average price protected in excess of $29/
barrel on hedged volumes.

Due to the natural hedge between its UK-based activities, which are Sterling
earning and Sterling debt funded and its international business, which is
principally denominated and funded in US dollars, the Group does not undertake
active currency hedging.

Tom Hickey

Chief Financial Officer

4 May 2004



TULLOW OIL PLC

PRELIMINARY RESULTS FOR YEAR ENDED 31 DECEMBER 2003

GROUP PROFIT AND LOSS ACCOUNT
                                                       2003      2002
                                            NOTES     £'000     £'000

Turnover                                            132,364   112,624
Cost of Sales
Operating Costs                                     (42,621)  (35,982)
Depletion and Amortisation                          (39,628)  (39,368)
                                                    (82,249)  (75,350)
Gross Profit                                         50,115    37,274
Administrative Expenses                              (2,727)   (3,610)
Depreciation                                           (332)     (315)
                                                     (3,059)   (3,925)

Operating Profit Before Exploration                  47,056    33,349
Activities
Exploration Costs Written Off                       (12,772)   (4,169)
Profit on Farmout of Licence Interests                    -       914
Operating Profit                                     34,284    30,094
Loss on Disposal of Producing Assets                   (952)        -
Profit on Ordinary Activities before                 33,332    30,094
Interest
Interest Receivable and Similar Income                2,016     1,409
Interest Payable and Similar Charges                 (8,730)   (9,044)

Profit on Ordinary Activities before                 26,618    22,459
Taxation
Taxation on Profit on Ordinary Activities
Current and Deferred Petroleum Revenue               (9,025)   (2,696)
Taxation
Current Corporation Taxation                         (9,414)   (6,589)
Deferred Corporation Taxation                         2,742      (378)
                                                    (15,697)   (9,663)

Profit for the Financial Year                        10,921    12,796
Dividends                                            (3,782)        -
Profit Retained for the Financial Year          4     7,139    12,796
Earnings per Ordinary Share                         Stg p     Stg p
- Basic                                         3      2.92      3.56
- Diluted                                              2.90      3.51

TULLOW OIL PLC

PRELIMINARY RESULTS FOR YEAR ENDED 31 DECEMBER 2003

GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
                                                     2003     2002
                                                    £'000    £'000

Profit for the Financial Year                      10,921   12,796
Currency Translation Adjustments                   (5,034)  (5,122)

Total Recognised Gains and Losses for the           5,887    7,674
Financial Year

RECONCILIATION OF MOVEMENTS IN GROUP EQUITY SHAREHOLDERS' FUNDS
                                                  2003        2002
                                                 £'000       £'000

Profit Retained for the Financial Year           7,139      12,796
Currency Translation Adjustments                (5,034)     (5,122)
Equity Shares Issued                            13,516         626

Net Increase in Equity Shareholders' Funds      15,621       8,300
Equity Shareholders' Funds - At 1 January      100,300      92,000

Equity Shareholders' Funds - At 31 December    115,921     100,300

TULLOW OIL PLC

PRELIMINARY RESULTS FOR YEAR ENDED 31 DECEMBER 2003

GROUP BALANCE SHEET

AS AT 31 DECEMBER 2003
                                                    2003      2002
                                         NOTES     £'000     £'000
Fixed Assets
Intangible Assets                                 48,434    34,498
Tangible Assets                                  144,333   161,089
Investments                                          496       299

                                                 193,263   195,886
Current Assets
Stock                                                437         -
Debtors                                           26,115    24,535
Cash at Bank and in Hand                          66,686    44,778

                                                  93,238    69,313
Creditors - Amounts falling due within
one year
Bank Loans and Overdrafts                        (27,544)  (27,078)
Trade and Other Creditors                        (33,173)  (26,464)

                                                 (60,717)  (53,542)

Net Current Assets                                32,521    15,771

Total Assets Less Current Liabilities            225,784   211,657

Creditors - Amounts falling due after
more than one year
Bank Loans                                       (59,458)  (74,923)

Provisions for Liabilities and Charges
Decommissioning Costs                            (47,524)  (32,826)
Deferred Taxation                                 (2,881)   (3,608)

Net Assets                                       115,921   100,300

Capital and Reserves
Called Up Equity Share Capital                    37,784    35,981
Share Premium Account                             14,198     2,485
Merger Reserve                                    56,617    69,213
Foreign Currency Translation Reserve             (11,024)        -
Profit and Loss Account                      4    18,346    (7,379)

Equity Shareholders' Funds                       115,921   100,300

TULLOW OIL PLC

PRELIMINARY RESULTS FOR YEAR ENDED 31 DECEMBER 2003

GROUP CASH FLOW STATEMENT
                                                    2003      2002
                                         NOTES     £'000     £'000

Net Cash Inflow from Operating               5    84,960    62,929
Activities

Returns on Investments and Servicing of      6    (7,533)   (4,070)
Finance

Taxation                                         (12,261)   (5,679)

Capital Expenditure and Financial            7   (42,044)  (56,251)
Investment

Net Cash Inflow/(Outflow) before
Management of Liquid Resources
and Financing                                     23,122    (3,071)

Management of Liquid Resources - Term              4,143      (896)
Deposits

Financing                                    8    (6,399)  (16,179)

Increase/(Decrease) in Cash for the Year          20,866   (20,146)

Reconciliation of Net Cash Flow to
Movement in Net Debt
Increase/(Decrease) in Cash for the Year          20,866   (20,146)
Cash Outflow/(Inflow) from Movement in            14,802    (3,012)
Debt
Cash (Inflow)/Outflow from Management of
Liquid Resources                                  (4,143)      896


Change in Net Funds/(Debt) resulting              31,525   (22,262)
from Cashflows
Currency Translation Adjustment                    1,507       694
Net Debt at 1 January                            (95,400)  (73,832)

Net Debt at 31 December                          (62,368)  (95,400)

TULLOW OIL PLC

PRELIMINARY RESULTS FOR YEAR ENDED 31 DECEMBER 2003

GROUP CASH FLOW STATEMENT (Continued)

Analysis of Changes in Net Debt       01.01.03      Cash   Exchange   31.12.03
                                                    Flow
                                         £'000     £'000      £'000      £'000

Cash at Bank and in Hand                 3,722    21,200       (304)    24,618
Overdrafts                                (665)     (334)       (56)    (1,055)
                                         3,057    20,866       (360)    23,563

Bank loans due within one year         (26,413)     (356)         -    (26,769)

Bank loans due after one year          (77,987)   15,158      1,739    (61,090)

                                      (104,400)   14,802      1,739    (87,859)

Term Deposits                            5,943    (4,143)       128      1,928

Net Debt                               (95,400)   31,525      1,507    (62,368)

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.

Cash at Bank and in Hand at 31 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 are stated in the Group Balance Sheet net of related unamortised
arrangement fees.

                                 TULLOW OIL PLC

              PRELIMINARY RESULTS FOR YEAR ENDED 31 DECEMBER 2003

                       NOTES TO THE PRELIMINARY ACCOUNTS

Note 1. Basis of Accounting

The preliminary accounts have been prepared under the historical cost convention
and in accordance with the accounting policies set out on pages 45 to 47 of the
Annual Report and Accounts for the year ended 31 December 2002.

Note 2. Basis of Preparation

The financial information set out above does not constitute the company's
statutory accounts for the years ended 31 December 2003 or 2002, but is derived
from those accounts. Statutory accounts for 2002 have been delivered to the
Registrar of Companies and those for 2003 will be delivered following the
company's annual general meeting. The auditors have reported on those accounts;
their reports were unqualified and did not contain statements under s237(2) or
(3) Companies Act 1985.

Note 3. Earnings Per Ordinary Share

The calculation of basic earnings per share is based on the profit for the year
after taxation of £10,920,541 (2002 - £12,795,601) and 374,427,152 (2002 -
359,324,277) 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 however, is 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 2,071,203 (2002 - 4,881,762) in
respect of the share option scheme, resulting in a diluted weighted average
number of shares of 376,498,355 (2002 - 364,206,039).

Note 4. Profit and Loss Account

                                                   Group       Group
                                                    2003        2002
                                                   £'000       £'000

At 1 January                                      (7,379)    (15,053)
Profit Retained for Financial Year                 7,139      12,796
Transfer from Merger Reserve                      12,596           -
Transfer to Foreign Currency Translation Reserve   5,990           -
Currency Translation Adjustments                       -      (5,122)

At 31 December                                    18,346      (7,379)

The Group has created a Foreign Currency Translation Reserve ('FCTR') to account
separately for the Currency Translation Adjustments. Since the Company has been
registered in England & Wales, such movements were debited to the Profit and
Loss Account, but during 2003 these amounts have been transferred to the FCTR.

Note 5. Net Cash Inflow from Operating Activities

                                                     2003       2002
                                                    £'000      £'000

Operating Profit for the Year                      34,284     30,094
Depletion and Amortisation                         39,628     39,368
Depreciation of Other Fixed Assets                    332        315
Exploration Costs & Farm Out                       12,772      3,255
Taxation Paid in Kind                              (2,739)    (2,014)
Increase in Stock                                    (437)         -
Increase in Operating Debtors                      (1,992)    (1,947)
Increase/(Decrease) in Operating Creditors          3,589     (5,806)
Currency Translation Adjustment                      (477)      (336)

Net Cash Inflow from Operating Activities          84,960     62,929

Note 6. Returns on Investments and Servicing of Finance

                                                      2003      2002
                                                     £'000     £'000

Interest Received                                    2,016     1,621
Interest Paid                                       (5,767)   (4,603)
Dividend Paid                                       (3,782)        -
Finance Fees Paid                                        -    (1,088)
Net Cash Outflow from Returns on Investments and
Servicing of Finance                                (7,533)   (4,070)

Note 7. Capital Expenditure and Financial Investment

                                                      2003      2002
                                                     £'000     £'000
Purchase of Tangible & Intangible Exploration      (45,951)  (60,798)
Assets
Purchase of Tangible Fixed Assets - Other             (235)     (327)
Disposal of Tangible Fixed Assets                    4,339         -
Farm Out of Intangible Exploration Assets                -     4,874
Purchase of Investments                               (197)        -

Net Cash Outflow from Investing Activities         (42,044)  (56,251)

Note 8. Financing

                                                    2003        2002
                                                   £'000       £'000

Issues of Ordinary Shares                         14,404         626
Costs of Share Issues                               (888)          -
Repayment of Loans                               (17,334)     (5,222)
Drawdown of Loan                                   2,531       8,174
Transfer to Restricted Funds Deposit Account      (5,027)    (19,425)
Debt Arrangement Fees                                (85)       (332)

                                                  (6,399)    (16,179)

Note 9. Subsequent Events

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

On 26 March 2004, the Company announced that it was considering making an offer
for the entire issued share capital of Energy Africa, a South African based oil
and gas exploration and production company whose shares are listed on the
Johannesburg Stock Exchange and traded (in the form of GDSs) on the Luxembourg
Stock Exchange.

In early 2004 Tullow drilled the Topaze South 1 well in Gabon. No significant
quantity of oil was found and the well was plugged and abandoned. The
information from this well will be further evaluated to better understand the
geology of the Topaze discovery. Tullow had a 100 per cent. carry in respect of
the costs associated with the well as a result of a farm in agreement.

In December 2003 the Rasulpur well was spudded in Block 9, Bangladesh. No
significant moveable hydrocarbons were encountered and it was plugged and
abandoned in mid February 2004. Costs associated with the well of £1,066,207 at
31 December 2003 are included in intangible exploration assets - costs of
exploration pending determination.

In April 2004 Tullow reported that the Lalmai-3 well, in Block 9, Bangladesh,
had encountered potentially gas-bearing sands. A production test will be
undertaken to establish whether this gas is commercial.

In March 2004,Tullow announced that it has agreed to purchase Chevron Texaco's
50 per cent interest in the Orwell field, UK SNS, thereby increasing its stake
to 100 per cent. Completion is expected during this summer with an effective
date of 1 October 2003.

On 15 April 2004 the Company announced the successful completion of the Monroe
well, UK Southern North Sea.

Note 10. Proven and Probable Reserves Summary (Unaudited)

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

1 Jan 2003     0.06   170.68   19.35    50.45       -   138.74   19.41   359.87       79.38
Revisions         -     8.03   (0.30)  (12.36)      -    (6.80)  (0.30)  (11.13)      (2.16)
Acquisitions
/Disposals    (0.05)   12.53       -        -       -    (0.80)  (0.05)   11.73        1.91
Production    (0.01)  (42.64)  (1.29)   (1.04)      -    (2.90)  (1.30)  (46.58)      (9.06)


31 Dec 2003       -   148.60   17.76    37.05       -   128.24   17.76   313.89       70.07


Note 11. Dividends

The Company initiated dividend payments during 2003 when an interim dividend of
1p per share was paid on 7 November, 2003. The Directors intend to recommend a
dividend of 1p per share which if approved at the AGM will be paid to
shareholders on the register on 21 May 2004.

Note 12. 2003 Annual Report and Accounts

The Annual Report and Accounts will be posted to all shareholders in due course.

                                    - END -

END


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