Preliminary Results

Tullow Oil PLC
29 March 2006

Tullow Oil plc

2005 Results

Record Results in 2005; Positive Outlook for 2006



29 March 2006 - Tullow Oil plc (Tullow), the independent oil and gas,
exploration and production Group, announces its results for the year ended 31
December 2005.  These results have been prepared in accordance with the Group's
policies under International Financial Reporting Standards (IFRS).



Tullow had a strong 2005, delivering record results. The Group achieved
exceptional asset performance and consistent organic production growth against a
background of increasing global oil and gas prices.  This performance, coupled
with financing initiatives undertaken in 2005, has allowed Tullow to reinvest at
record levels while maintaining a progressive dividend policy and modest levels
of gearing.



Results Highlights
                                                              2005               2004        Change
                                                        £ millions         £ millions
Sales Revenue                                                445.2              225.3        Up 98%
Operating Profit                                             198.6               56.8       Up 250%
Profit Before Tax                                            178.6               46.8       Up 282%
Operating Cash Flow before Working Capital                   288.1              139.5       Up 106%
                                                             Stg p              Stg p
Basic Earnings per Share                                     17.50               5.88       Up 198%
Final Dividend per Share                                      3.00               1.25       Up 140%



•         44% increase in average annual production to 58,450 boepd

•         Organic reserves replacement of 118%; total reserves increased by 53
          mmboe to 358 mmboe

•         Current production is 69,000 boepd and is expected to reach 75,000
          boepd by year end

•         Three discoveries close to Tullow infrastructure in the UK and Gabon

•         Completion of £200 million Schooner and Ketch acquisition and major
          redevelopment under way

•         Steady progress in development of the giant Kudu gas project offshore
          Namibia

•         Good progress on the key Okume Complex and West Espoir developments

•         Year-to-date exploration: two oil discoveries in Uganda, one UK gas
          discovery, two dry holes in Gabon



Commenting today, Pat Plunkett, Chairman, said:

'2005 was a year of many achievements for Tullow which included our first
operated UK offshore development, the largest refinancing ever undertaken by a
UK oil and gas independent and a record level of development, exploration and
new venture activity across the Group's three core areas. Today's record results
demonstrate the quality and depth of Tullow's portfolio. We are reaping the
benefits of the scale achieved through our major acquisition and investment
programme of recent years and we look forward to the many exciting opportunities
for further development and growth in 2006 and beyond.'



Aidan Heavey, Chief Executive, said:

'Our production is growing strongly and is expected to reach 75,000 boepd by the
end of the year. On the exploration front we plan to drill over 20 wells,
including further wells in Uganda, where we have scheduled an extensive
exploration and appraisal programme to build on the recent M'Puta and Waraga
discoveries. The outlook for Tullow is very positive. Oil and gas prices are
strong and forecast to remain so.  Our existing assets and work programmes are
expected to deliver robust organic growth and our new ventures programme and
other development opportunities offer compelling upside potential.'



Presentation, Webcast and Conference Calls

In conjunction with these results Tullow is conducting a presentation in London
and a number of events for the financial community. Details are available on
page 14 of this announcement and in the 2005 Results Centre on the Group's
website at www.tullowoil.com.



2005 Results

For the year ended 31 December 2005



2005 was an excellent year for Tullow, with many new achievements in operations
and a record financial performance.  These results illustrate the benefits of
the Group's increased scale and deliver on the significant investments made over
the past five years, during which period the Group has been transformed through
a mixture of organic and acquisition-led expansion.



Record Financial Performance

Sales revenue increased 98% to £445.2 million (2004: £225.3 million), reflecting
a full year contribution from the Energy Africa assets, nine months contribution
from the Schooner and Ketch fields and oil and gas prices significantly higher
than in 2004.



Operating profit increased 250% to £198.6 million (2004: £56.8 million) and
profit before tax increased 282% to £178.6 million (2004: £46.8 million),
including the profit of £36.1 million on the disposal of non-core oil assets in
the UK and offshore Congo and the sale of equity in the Horne & Wren
development.



Basic earnings per share amounted to 17.50 pence, an increase of 198% compared
to 5.88 pence in 2004.  Operating cash flow before movements in working capital
amounted to £288.1 million, an increase of 106% over 2004, reflecting the
quality of the Group's producing asset base and allowing record levels of
reinvestment in the business.



Progressive Dividend Policy

The Group's capital expenditure programmes are comfortably funded from strong
operating cash flow and profit on disposals. The refinancing initiatives
undertaken during 2005 have significantly enhanced the Group's financial
flexibility over both the short and long-term.  In line with the Group's
progressive dividend policy, and reflecting the cash generated by the business
and the capital investment and acquisition opportunities available, the Board
recommends a final dividend of 3.00 pence per share. This brings the total
dividend for the year to 4.00 pence per share (2004: 1.75 pence per share).
Subject to shareholder approval at the Annual General Meeting (AGM), the
dividend will be paid on 7 June to shareholders on the register at 12 May.



Major investment in People and Facilities

A major investment in people and facilities has been made reflecting the
material growth of the Group in recent years. During 2005 the London team moved
to a new office at Chiswick, over 40 additional staff were recruited and
dedicated teams were put in place for the important Schooner & Ketch and Kudu
projects.



As announced in February, Adrian Nel, Tullow's Exploration Director, will retire
at the AGM in May. Since his appointment to the Board in September 2004, Adrian
has made an outstanding contribution to the integration of Tullow's exploration
activities and enhanced the Group's licence portfolio and exploration strategy.
Angus McCoss will join Tullow in April as General Manager Exploration. Angus
previously worked for the Shell Group in Nigeria.



Paul McDade is appointed to the Board of Tullow, with effect from today. Paul
joined the Group in 2001 and became Chief Operating Officer following the Energy
Africa Acquisition in 2004.



Continuing Positive Outlook

Tullow has steadily developed a balanced portfolio of international exploration
and production assets. The performance of these assets during 2005 and the
organic growth expected in 2006 provide a solid base for further growth.
Projects such as the development of the Kudu field in Namibia and the
exploration programme in Uganda provide possibilities for significant changes in
the Group's scale, while the Group's cash flow and modest gearing create the
flexibility to accelerate programmes and take advantage of development and
acquisition opportunities as they arise. The outlook for Tullow is very
positive.



Operations Review



The focus of Tullow's business is to maintain a strong portfolio of assets and a
growth strategy that will allow the Group to continue its development through
all phases of the resource price cycle. Over time we have built a balanced
portfolio focused on three core areas - North West Europe, Africa and South
Asia. We strive to maintain this balance in the various aspects of our
portfolio: between oil and gas production, between our geographical areas,
across political and currency exposures and between moderate and high-risk
exploration programmes.



Growing in the UK Gas Market

Tullow has steadily increased its acreage and developed its reputation as a
technically innovative and commercially astute operator since its entry into the
UK Southern North Sea in 2001. Tullow now has over 40 licences and a strategic
position in terms of acreage and infrastructure. During this time, the UK has
become a net importer of gas to satisfy indigenous demand. This market change
has increased pressure on pricing, resulting in sustained gas price rises for
domestic and industrial consumers. While a number of initiatives are planned to
increase national supply capability, the recent extreme volatility in European
gas markets provides further evidence that the prospects for independent
producers in the UK gas market remain very favourable.



The Group continues to extend and enhance its position through a combination of
acquisitions, organic growth via active development, exploration and
participation in licensing rounds. 2005 activity, including the completion of
the operated Horne & Wren development, the acquisition of the Schooner and Ketch
assets and infill drilling in producing fields brought Tullow's UK Gas
production to over 200 mmscfd for the first time in December. This production
level has since increased to over 210 mmscfd with the recent completion of the
Delilah well. In addition, the first well in the Schooner and Ketch
redevelopment, Schooner-10, has successfully encountered the reservoir and is
being prepared for production in April 2006.



Exploration is an important part of the UK business and the gas discoveries
during 2005 by the Opal and K3 exploration wells, and more recently of the
Humphrey well, continue to demonstrate the prospectivity of the region and
support its long-term future. Tullow plans a further six UK exploration wells
for this year, including the Cygnus exploration well which is currently
drilling.



African Reserve and Production Growth

Tullow believes there is an outstanding opportunity over the coming years for
the Group to continue to build a truly pan-African oil and gas business. During
2005 we invested over £139 million in our African business, with exceptional
results:

•         In Gabon, infill drilling and exploration programmes have more than
          doubled reserves over the last two years and allowed us to maintain 
          net production to Tullow in excess of 17,000 boepd;

•         In Equatorial Guinea, ongoing infill drilling and careful management
          of the Ceiba field have enabled it to attain production levels not 
          seen since 2002, while the Okume project remains within budget and on 
          schedule for first oil by the end of 2006;

•         In Congo, the M'Boundi field delineation is almost complete. In 2005
          the field delivered further significant increases in production and 
          reserves and improved sales prices;

•         In Cote d'Ivoire, infill drilling on Espoir has brought production
          increases of over 20% in recent months, while first oil from the West 
          Espoir development project is expected before year end;

•         Current African oil production exceeds 34,000 bopd, with further
          increases anticipated over the remainder of the year.


In Namibia, Tullow continues to make steady progress in the development of the
Kudu gas field. This is a strategic project, with the potential to transform the
Namibian energy market and contribute significantly to its future energy
requirements. 2006 will be an important year both for the gas sales negotiations
for the gas-to-power development and for the preparation for two appraisal wells
scheduled for the first quarter of 2007.  These wells will assist in determining
the potential of the significant reserves upside of the field.



Africa is a region of high exploration potential. During 2005 Tullow drilled a
total of six wells, recording a discovery in Gabon and providing significant
support for future work in Mauritania. Three wells were drilled in Angola and
while results were disappointing, a number of further opportunities have been
identified.  The 2006 drilling programme has already brought very encouraging
results. High impact exploration projects in Uganda produced two discoveries,
M'puta and Waraga and could mark the first stage in the development of a
material new hydrocarbon province. Tullow and its partners plan a minimum of
four further onshore wells in 2006 and two additional wells in Lake Albert in
2007 as part of an extensive exploration and appraisal programme across its
Albertine Basin acreage. Neither of two wells in early 2006 on the Akoum West
and Soulandaka prospects in Gabon discovered commercial hydrocarbons and the rig
will now move to drill the Dogbolter prospect in the Gryphon Marin licence.



Tullow continues to seek new ventures in Africa and in March 2006, the
Government of Madagascar approved Tullow's participation in the onshore Block
3109. Further exploration and development opportunities are currently in the
final stages of negotiation and should include entry into at least one
additional country.



Renewing the South Asia Business

While Tullow's production in South Asia has been modest, an extensive work
programme in 2005 covering a number of important exploration and development
projects has the potential to transform the Group's business in the area.



In Bangladesh, Tullow submitted an Appraisal Programme to Petrobangla for the
Bangora and Lalmai discoveries in Block 9. The programme includes extensive 3D
seismic, appraisal drilling and the initiation of production on a long-term test
basis to help supply much needed gas to the Dhaka region. The seismic has been
completed and provided key information and encouragement for the appraisal
drilling, which will start in April 2006, as will first gas from the long-term
test. The introduction of Total as a partner in offshore Blocks 17&18 brought a
renewal of activity with the recent commencement of an offshore seismic survey.



In Pakistan, work on the development of Chachar field continues, with first gas
forecast for the final quarter of 2006. Drilling has commenced on the Shahpur
Chakar well in the Nawabshah block. We also added a number of potentially high
impact exploration blocks to our portfolio in Pakistan including Kohat, where a
seismic survey is under way and drilling is likely to begin early in 2007.



In India, we recently commenced a 1,152 km 2D seismic programme in Block CB-ON/
1. In parallel, the joint venture is integrating information from significant
regional discoveries to the South and the North, and we anticipate a multi-well
drilling programme in 2007.



Rigorous Operational Risk Management

Risk management is central to our business, particularly in light of the
international spread of our activities and the dynamic nature of our industry.
The Group gives regular consideration to the key risks facing the business, with
particular reference to those concerning the overall safety of our operations,
the geographical balance of our activities and the characteristics of our
individual assets and joint ventures.



Finance Review



Tullow had a very strong 2005, achieving record profits, earnings and cash flow
from operations.



Compliance with IFRS

The results for 2005 have been prepared in accordance with the Group's policies
under IFRS. Tullow adopted IFRS with effect from 1 January 2004, with the
exception of IAS 39 in respect of derivative financial instruments, which has
been adopted with effect from 1 January 2005.  The 2004 financial statements
have been restated under IFRS and were published on 22 August 2005 with full
details of the accounting policies adopted and are published on the Group's
website at www.tullowoil.com.



Strong Results across Key Performance Indicators

 The Group's financial performance was complemented by strong results across key
performance indicators.


Key Performance Indicators                                            2005          2004            Change
Lost Time Incident Frequency Rate1                                    0.82          1.96          Down 58%
Production (boepd)                                                  58,450        40,600            Up 44%
Operating Cash flow before working capital per boe (£)               13.50          9.45            Up 43%
Cash Operating Costs per boe (£)2                                     4.84          4.40            Up 10%
Gearing (%)3                                                           36%           17%            Up 19%
Reserve Replacement (%)                                               118%           83%            Up 35%
Realised Oil Price per bbl ($)                                       43.05         34.13            Up 26%
Realised Gas Price (pence per therm)                                 33.85         22.89            Up 47%

1 Lost Time Incidents per million man hours worked

2 Cash operating costs are cost of sales excluding depletion and amortisation
and under/over lift movements

3 Gearing is net debt divided by net assets



Excellent Operating Performance

Working interest production averaged 58,450 boepd, while sales volumes averaged
53,350 boepd.  These production figures are 44% ahead of 2004, principally as a
result of a full year contribution from the Energy Africa assets and a
nine-month contribution from the Schooner and  Ketch acquisition, completed in
March. During the year the Group disposed of the Alba and Caledonia assets in
June and the offshore Congo (Brazzaville) interests in August.



Average prices realised during the year were significantly higher than in 2004.
Oil was US$43.05/bbl  (2004: US$34.13/bbl) and UK gas was 33.85p/therm (2004:
22.89p/therm). Tullow's oil production sold at an average discount of 13% to
Brent during the year. This discount is expected to reduce to between 8% and 9%
during 2006. The Group also received tariff income of £14.7 million (2004: £9.4
million) from use of its UK infrastructure.



The combination of the higher prices and increased volumes meant that revenue
increased 98% to £445.2 million (2004: £225.3 million).


Revenue analysed by Core Area                             Oil           Gas         Total       % of Total
                                                   £ millions    £ millions    £ millions
NW Europe (UK)                                           17.6         161.9         179.5              40%
Africa                                                  264.9             -         264.9              60%
South Asia                                                  -           0.8           0.8                -
Total                                                   282.5         162.7         445.2
% of Total                                                63%           37%



Operating profit before exploration activities amounted to £224.4 million (2004:
£74.7 million), up 200%, reflecting the strong growth in Group production,
profit on disposals and realised oil and gas prices.



Underlying cash operating costs, which exclude depletion and amortisation and
movements on under/over lift, amounted to £102.2 million (£4.84/boe). These
costs were marginally above expectations and reflected, in particular, oil price
linked royalty payments on Gabonese production.  Reported operating costs before
depletion and amortisation for the year of £123.5 million (2004: £60.1 million)
are also impacted by the inclusion at market value of £8.2 million associated
with overlifted volumes at 31 December, £5.5 million of overlift associated with
the disposal of Alba and Caledonia and £7.6 million of overlift associated with
the sale of the Group's offshore Congo interests, completed in August 2005.



Depreciation, depletion and amortisation for the year amounted to £119.7 million
(£5.67/boe).  Depreciation includes a total of £2.4 million of impairment costs
associated with Tullow's producing interests in Pakistan.



Higher Exploration Write-off reflecting Increased Activity

Exploration costs written off were £25.8 million (2004: £18.0 million), in
accordance with the Group's 'successful efforts' accounting policy, which
requires that all costs associated with unsuccessful exploration are written off
to the Income Statement.  The Group drilled 10 wells in 2005, achieved four
discoveries, and is planning to drill 20 wells in 2006.



Hedging reflected in Income Statement under IFRS

At 31 December 2005 the Group's derivative instruments had a negative mark to
market value of £147.8 million. Of this amount, £97.2 million (66%) relates to
contracts acquired as part of the acquisition of Energy Africa in 2004. While
the bulk of these arrangements qualify for hedge accounting and will
consequently be largely reflected in the Income Statement as the related
contracts mature, the variations in crude oil discounts and gas production
patterns for Tullow inevitably led to a degree of hedge ineffectiveness which is
accordingly included in the charge of £0.2 million recognised in the Income
Statement for the year. The charge also reflects the effect of time value on the
mark to market value of the Group's derivative instruments.  The Group's hedge
position as at 22 March 2006 can be summarised as follows:


Hedge Position                                            H1 2006               H2 2006              2007
Oil
Volume - bopd                                              10,242                11,217             7,000
Current Price  Hedge - US$/bbl                              39.99                 42.90             45.06
Gas Hedges
Volume - mmscfd                                             91.67                 50.00             15.00
Current Price Hedge - p/therm                               58.70                 42.61             58.68



Healthy Interest Cover

The net interest charge for the year was £19.8 million (2004: £10.0 million).
The increase reflects higher levels of net debt arising from acquisitions and a
one-off non-cash charge of £4.1 million representing accelerated amortisation of
financing fees associated with facilities cancelled during the year as part of
the Group's refinancing.  Excluding these items, and eliminating gains from
asset disposals, interest was covered over 15.5 times (2004: 15.9 times).



Taxation

The tax charge of £65.4 million (2004: £15.5 million) relates to the Group's
enlarged North Sea and Gabonese activities and represents 37% of the Group's
profit before tax (2004: 33%).  After adjusting for exploration costs and
non-recurring items associated with the profit on asset disposals, the Group's
underlying effective tax rate for the year is 35%  (2004: 25%).



While Tullow's UK business has prospered, the Government's decision to raise the
supplemental corporation tax rate for the industry is difficult to understand at
a time when the UK, as a net importer of gas, is seeking to promote investment
in exploration and maximise recovery of indigenous reserves.



Acquisitions and Portfolio Management

During the year Tullow completed the acquisition of the Schooner and Ketch
assets for a net cash payment on completion of £189.3 million. A purchase price
allocation exercise has been undertaken on these assets incorporating the fair
value of all reserves, costs and contractual arrangements acquired, resulting in
a total allocation to oil and gas assets of £218.0 million. A creditor of £31.3
million in respect of the gas contracts which were out-of-the-money as at 31
March 2005 has also been recognised; the majority of these contracts expire in
late 2007.



The Group completed the disposal of the Alba and Caledonia offshore assets in
the UK and the offshore Congo (Brazzaville) assets in June and August 2005
respectively. In addition, final income has been recognised in relation to
incremental consideration received based on reserves and performance of the
Horne & Wren fields. The profit on disposals amounts to £36.1 million (inclusive
of the £5.5 million of overlift outlined above).



Record Operating Cash Flow and Strong Balance Sheet

The strong pricing environment, allied to increasing production and effective
control of underlying operating costs, led to record operating cash flow before
working capital movements of £288.1 million, 106% ahead of 2004. This cash flow
enabled the Group to maintain modest gearing of 36% at year end, to increase
dividends to shareholders in respect of the period by 129% and to invest £193.0
million in exploration and development activities in the year.



Over 80% of Group capital expenditure was associated with ongoing development
and production enhancement projects in the UK, Gabon, Congo (Brazzaville),
Equatorial Guinea and Cote d'Ivoire. The programmes associated with this
expenditure have allowed Tullow to achieve organic reserve replacement of 118%
over the period. Tullow has approved total 2006 capital expenditure of £280
million across all assets, driving group production to a target of over 75,000
boepd by year end.



Net assets at 31 December 2005 amounted to £389.0 million (2004: £375.5
million).  Net assets were reduced by £120.4 million in the year due to the
recognition of a hedge reserve in accordance with IAS 39 (adopted 1 January
2005).  An increase in net assets (foreign currency translation reserve) of
£32.4 million resulted from the strengthening of the US Dollar against Sterling
from US$1.93 to US$1.72 in the year.



Successful major Refinancing

Over the last five years Tullow has undertaken a range of acquisitions and field
developments, all of which have been wholly or partly debt financed. During 2005
the Group completed a US$850 million refinancing, the largest such facility ever
negotiated by a UK independent oil company. This has allowed Tullow to
consolidate existing borrowings into a single facility, to halve its
collateralisation obligations and to maintain financial flexibility for future
growth. The Group currently has over US$400 million of unutilised debt capacity
in addition to its cash balances.



Ends



For further information contact:

Tullow Oil plc              Citigate Dewe Rogerson            Murray Consultants

+ 44 20 8996 1000           [phone]                  [phone]
Aidan Heavey, CEO           Martin Jackson                    Joe Murray
Tom Hickey, CFO
Chris Perry, IRO



Disclaimer

This statement contains certain forward-looking statements that are subject to
the usual risk factors and uncertainties associated with the oil and gas
exploration and production business. Whilst the Group believes the expectations
reflected herein to be reasonable in light of the information available to them
at this time, the actual outcome may be materially different owing to factors
beyond the Group's control or within the Group's control where, for example, the
Group decides on a change of plan or strategy. Accordingly no reliance may be
placed on the figures contained in such forward-looking statements.



Group Income Statement

Year Ended 31 December 2005


                                                                                            2005        2004
                                                                                           £'000   *Restated
                                                                                                       £'000
Sales Revenue                                                                            445,232     225,256
Cost of Sales                                                                          (243,149)   (141,228)
Gross Profit                                                                             202,083      84,028
Administrative Expenses                                                                 (13,793)    (11,573)
Disposal of Subsidiaries                                                                  30,537           -
Profit on Sale of Oil and Gas Assets                                                       5,524       2,292
Exploration Costs Written Off                                                           (25,783)    (17,961)
Operating Profit                                                                         198,568      56,786
Loss on Hedging Instruments                                                                (159)           -
Finance Revenue                                                                            4,367       3,458
Finance Costs                                                                           (24,197)    (13,449)
Profit from Continuing Activities before Tax                                             178,579      46,795
Income Tax Expense                                                                      (65,443)    (15,460)
Profit for the Year from Continuing Activities                                           113,136      31,335
Earnings per Ordinary Share                                                                Stg p       Stg p
- Basic                                                                                    17.50        5.88
- Diluted                                                                                  17.15        5.81





Group Statement of Recognised Income and Expense

Year Ended 31 December 2005


                                                                                       2005         2004
                                                                                      £'000    *Restated
                                                                                                   £'000
Profit for the Financial Year                                                       113,136       31,335
Currency Translation Adjustments                                                     32,447     (19,338)
Hedge Movement                                                                    (120,449)            -
Total Recognised Income and Expense for the Year                                     25,134       11,997


*Restated for the effect of adopting IFRS




Group Balance Sheet

As at 31 December 2005

                                                                                       2005         2004
                                                                                      £'000    *Restated
                                                                                                   £'000
ASSETS
Non-Current Assets
Intangible Exploration and Evaluation Assets                                        160,543      103,944
Property, Plant and Equipment                                                       736,563      545,527
Investments                                                                             496          496
                                                                                    897,602      649,967
Current Assets
Inventories                                                                           5,141        3,392
Trade Receivables                                                                    66,441       37,156
Other Current Assets                                                                 26,851       17,051
Cash and Cash Equivalents                                                            65,386       85,070
                                                                                    163,819      142,669
Total Assets                                                                      1,061,421      792,636
LIABILITIES
Current Liabilities
Trade and Other Payables                                                          (139,415)    (102,614)
Other Financial Liabilities                                                               -      (5,302)
Income Tax Payable                                                                 (25,038)     (13,359)
Derivative Financial Instruments                                                   (70,639)            -
Total Current Liabilities                                                         (235,092)    (121,275)
Non-Current Liabilities
Trade and Other Payables                                                           (19,118)     (13,014)
Other Financial Liabilities                                                       (198,372)    (143,398)
Deferred Tax Liabilities                                                           (51,473)     (68,803)
Provisions                                                                         (91,139)     (70,679)
Derivative Financial Instruments                                                   (77,208)            -
Total Non-Current Liabilities                                                     (437,310)    (295,894)
Total Liabilities                                                                 (672,402)    (417,169)
Net Assets                                                                          389,019      375,467
EQUITY
Equity attributable to Equity Holders of the Parent
Called up Share Capital                                                              64,744       64,537
Share Premium                                                                       123,019      121,656
Other Reserves                                                                       60,589      148,591
Retained Earnings                                                                   140,667       40,683
Total Equity                                                                        389,019      375,467


*Restated for the effect of adopting IFRS




Group Cash Flow Statement

Year Ended 31 December 2005
                                                                                     2005         2004
                                                                                    £'000    *Restated
                                                                                                 £'000
Cash Flows from Operating Activities
Cash Generated from Operations                                                    273,840      154,307
Income Taxes Paid                                                                (25,360)     (14,497)
Net Cash from Operating Activities                                                248,480      139,810
Cash Flows from Investing Activities
Acquisition of Subsidiary, Energy Africa, Net of Cash Acquired                          -    (166,055)
Disposal of Subsidiary                                                             57,227            -
Disposal of Oil and Gas Assets                                                     31,769        4,730
Purchase of Intangible Exploration & Evaluation Assets                           (69,766)     (23,912)
Purchase of Property, Plant and Equipment                                       (298,320)     (71,193)
Interest Received                                                                   4,359        3,436
Net Cash used in Investing Activities                                           (274,731)    (252,994)
Cash Flows from Financing Activities
Net Proceeds from Issue of Share Capital                                            1,570      120,913
Debt Arrangement Fees                                                            (10,481)      (3,050)
Repayment of Bank Loans                                                         (351,637)     (67,261)
Drawdown of Bank Loan                                                             390,515       98,620
Interest Paid                                                                    (21,483)      (9,494)
Dividends Paid                                                                   (14,555)      (6,995)
Net Cash Used in Financing Activities                                             (6,071)      132,733
Net (Decrease)/Increase in Cash and Cash Equivalents                             (32,322)       19,549
Cash and Cash Equivalents at Beginning of Period                                   85,070       65,631
Translation Difference                                                             12,638        (110)
Cash and Cash Equivalents at end of Period                                         65,386       85,070


*Restated for the effect of adopting IFRS





Notes to the Preliminary Accounts

Year Ended 31 December 2005



1.       Basis of Accounting and Presentation of Financial Information



The financial information contained in this announcement does not constitute
statutory accounts as defined in Section 240 of the Companies Act 1985. However,
the financial statements contained in this announcement are extracted from the
audited statutory accounts for the financial year ended 31 December 2005.
Statutory accounts for 2004 prepared under UK GAAP have been delivered to the
Registrar of Companies and those for 2005 prepared under IFRS will be delivered
following the Company's AGM.  The auditors have reported on those accounts;
their reports were unqualified and did not contain statements under s.237(2) or
(3) Companies Act 1985.



Whilst the financial information included in this preliminary announcement has
been complied in accordance with IFRS, this announcement does not itself contain
sufficient information to comply with IFRS.



This is the first year in which the Group has prepared its financial statements
under IFRS and the comparatives have been restated from UK Generally Accepted
Accounting Practice (UK GAAP) to comply with IFRS. The Group issued a press
release in August 2005 incorporating its preliminary IFRS financial statements
for 2004 and revised accounting policies, which are unchanged in these financial
statements, and the reconciliations to IFRS from the previously published UK
GAAP financial statements. This information is available on our website
(www.tullowoil.com).



2.       Earnings per Share



The calculation of basic earnings per share is based on the profit for the year
after taxation of £113,136,158 (2004 - £31,335,220) and 646,637,815 (2004 -
532,980,261) 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 13,214,424 (2004: 6,042,545) in
respect of the share option scheme, resulting in a diluted weighted average
number of shares of 659,852,239 (2004: 539,022,806).



3.       Dividends Paid and Proposed



During the year the Company paid a final 2004 dividend of 1.25 pence per share
and an interim 2005 dividend of 1 pence per share, a total dividend of 2.25
pence per share (2004: 1.5 pence per share). The Directors intend to recommend a
final 2005 dividend of 3 pence per share, which, if approved at the AGM, will be
paid on 7 June to shareholders on the register at 12 May.



4.       2005 Annual Report and Accounts



The Annual Report and Accounts will be posted to all shareholders on 2 May 2006,
save those who have elected to receive these electronically. Investors willing
to avail themselves of this facility should visit our website
(www.tullowoil.com) and follow the appropriate links.



5.       The Annual General Meeting is due to be held at Haberdashers' Hall, 18
West Smithfield, London, EC1 on Wednesday 31 May at 12 noon.



6.       Cash Flows from Operating Activities

                                                                                          2005        2004
                                                                                         £'000   *Restated
                                                                                                     £'000
Profit before taxation                                                                 178,579      46,795
Adjustments for:
Depletion, Depreciation and Amortisation                                               119,697      81,098
Foreign Exchange Profit/Loss                                                                72     (4,044)
Exploration Costs                                                                       25,783      17,961
Disposal of Subsidiaries                                                              (30,537)           -
Profit on Disposal of Oil and Gas Assets                                               (5,524)     (2,292)
Operating Cash Flow before Working Capital                                             288,070     139,517
Increase in Trade and Other Receivables                                               (38,538)    (34,215)
Increase in Inventories                                                                (1,749)     (1,721)
Increase in Trade Payables                                                               4,665      40,179
Share Based Payment Charge                                                               1,403         556
Hedge Ineffectiveness                                                                      159           -
Interest Receivable                                                                    (4,367)     (3,458)
Finance Costs Payable                                                                   24,197    (13,449)
Cash Generated from Operations                                                         273,840     154,307



7.       Group 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
Commercial
1  Jan 2005          14.60    131.95    116.07    28.00        -     96.20   130.67    256.15     173.36
Revisions                -     21.09     22.04   (3.79)        -    (0.03)    22.04     17.27      24.92
Acquisitions/      (13.81)    250.45   (12.95)        -        -         -  (26.76)    250.45      14.97
Disposals
Production          (0.79)   (47.31)   (12.20)   (0.41)        -    (0.91)  (12.99)   (48.63)    (21.10)
31 Dec 2005              -    356.18    112.96    23.80        -     95.26   112.96    475.24     192.15
Contingent
1 Jan 2005               -    121.80         -   780.60        -     16.20        -    918.60     153.10
Revisions                -     69.60      0.70     0.60        -         -     0.70     70.20      12.40
31 Dec 2005              -    191.40      0.70   781.20        -     16.20     0.70    988.80     165.50
Total
31 Dec 2005              -    547.58    113.65   805.00        -    111.46   113.65  1,464.04     357.65



Proven and Probable Commercial Reserves are based on a Group reserves report
produced by an independent engineer.  Proven and Probable Contingent Reserves
are based on both Tullow's estimates and the Group reserves report produced by
an independent engineer.



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 162.2 mmboe
at 31 December 2005 (2004: 149.99 mmboe), calculated at  $40/bbl (2004: $30/bbl
). Contingent Reserves relate to reserves in respect of which development plans
are in the course of preparation or further evaluation is under way with a view
to development within the foreseeable future.

About Tullow Oil plc
Tullow Oil plc is a leading independent oil and gas, exploration and production
group and is quoted on the London and Irish Stock Exchanges (symbol: TLW.L). The
Group has interests in over 90 production and exploration licences in 15
countries and focuses on three core areas: North West Europe, Africa and South
Asia.  For further information please consult the Group's website
www.tullowoil.com.



Events on Results Day

In conjunction with these results Tullow is conducting a London Presentation and
a number of events for the financial community.  All times are BST.



09.30 UK/European Conference Call (and simultaneous Webcast)

To access the call please dial the appropriate number below shortly before the
call and ask for the Tullow Oil plc conference call.  A replay facility will be
available from approximately noon on 29 March until 4 April.  The telephone
numbers and access codes are:


Live Event                                         Replay Facility available from Noon
UK Participants           020 7138 0828            UK Participants           020 7806 1970
Irish Participants        01 655 0485              Irish Participants        01 659 8321
Other Participants        [phone]         Other Participants        [phone]
                                                   Access Code               9143802#



To join into the live webcast, or play the on-demand version, you will need to
have either Real Player or Windows Media Player installed on your computer.



17:30 US Conference Call

To access the call please dial the appropriate number below shortly before the
call and ask for the Tullow Oil plc conference call.  A replay facility will be
available from approximately 20.30 29 March until 4 April.  The telephone
numbers and access codes are:


Live Event                                         Replay Facility available from 20:30
Domestic Toll Free        877 502 9274             Domestic Toll Free        888 203 1112
Toll                      [phone]          Toll                      [phone]
                                                   Access Code               4166860




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            The company news service from the London Stock Exchange                  EFD