Trading Statement

Tullow Oil PLC
05 July 2006

News Release





Tullow Oil plc Trading Statement and Operational Update




5 July 2006 - Tullow Oil plc (Tullow) issues this Trading Statement in respect
of the first half of the 2006 financial year to 30 June 2006 and this
Operational Update in respect of Production, Development and Exploration
activities during the period April to July 2006.



The Trading Statement is in advance of the Group's Interim Results, which are
scheduled for release on Wednesday, 6 September 2006.  The information contained
herein has not been audited and is subject to further review.



HIGHLIGHTS



Trading for the first half of 2006 was at record levels, with a strong
production performance combining with a reduced oil price discount and
continuing favourable oil and gas pricing.

Production and Development

•  In the first half of 2006 the Group drilled 18 development wells
   increasing average Group working interest production to 63,200 boepd, 8% 
   higher than 2005 levels;

•  Current working interest production potential is approximately 72,000
   boepd. This includes 9,000 boepd from Horne & Wren, which is shut in for the
   summer months to take advantage of the seasonal price differential;

•  Further strong growth in production is expected in the second half of
   the year through the ongoing development programmes on the Schooner and Ketch
   fields (UK), the Okume Complex (Equatorial Guinea), West Espoir (Cote 
   d'Ivoire), Bangora (Bangladesh) and Chachar (Pakistan);

•  Working interest production in 2006 is expected to average
   approximately 66,000 boepd and exceed 75,000 boepd by year-end.

Exploration and New Ventures

•  In the first half of 2006 the Group drilled 11 exploration wells of
   which six discovered hydrocarbons;

•  The prospectivity of the Albertine Basin in Uganda has been
   significantly enhanced by the Mputa and Waraga discoveries and excellent 
   results to date from the Waraga well test. Further exploration and appraisal 
   work, including the Kingfisher well, is planned for the next 12 months;

•  Three successful exploration wells in the UK Southern North Sea
   including the potentially significant K4 discovery in the CMS Area;

•  An active new ventures programme with further near-term West African
   additions anticipated.

Commenting today, Aidan Heavey, Chief Executive of Tullow said:

'Tullow's business is performing strongly and our major appraisal and
development programmes, in each core area, are progressing to plan. The recent
exploration and well testing results in Uganda indicate significant potential in
this virtually unexplored basin and provide a lot of encouragement for the
forward programme in the region.  Overall, the outlook for the remainder of 2006
is very promising.'

Conference Calls
In conjunction with this announcement Tullow is conducting two conference calls.
Details are available at the end of the release.

Trading Statement

This trading statement is provided for the six months ended 30 June 2006 in
advance of the Group's 2006 Interim Results, which are scheduled for release on
6 September 2006. The information contained herein has not been audited and is
subject to further review.

Tullow had a strong first half of 2006. Trading and production was at record
levels, combined with a reduced oil price discount and continuing favourable oil
and gas pricing.

Production

Group working interest production for the first half of 2006 averaged 63,200
boepd, which is 8% greater than the 2005 average production level.

A further breakdown of these figures is provided in the Operational Update for
each core area. Production figures remain subject to final reconciliation and do
not equate to sales volumes. This is due to variations in lifting schedules and
because a portion of the production is delivered to host governments under the
terms of Production Sharing Contracts.

Working interest production for 2006 is expected to average approximately 66,000
boepd, with year end production expected to exceed 75,000 boepd.

Realised prices and oil discount

Average prices realised during the first half of 2006 were significantly higher
than those for 2005. Realised oil price was approximately US$63/bbl (pre hedges)
and US$55/bbl (post hedges) and realised UK gas price was approximately 52-53p/
therm.

During the first half of 2006 the Group's oil production sold at an average
discount of 4 to 5% in relation to dated Brent and this level of discount is
expected to continue for the remainder of the year.  The discount has narrowed
from a 2005 average of 13% due to improved market conditions and better
marketing arrangements, combined with the sale of the Alba field in 2005. Alba
crude traded at a significant discount to Brent.

Overlift position

At 30 June 2006, Tullow was in a net overlift position amounting to an estimated
360,000 barrels. Such overlift positions are valued at market value and
accordingly a charge of approximately £10.1 million will be made to Cost of
Sales.

Exploration Write-Off

Tullow's accounting policy is to write-off in full, to the Income Statement, all
costs relating to pre-licence costs and unsuccessful exploration activities
during the period. Based on current estimates, Tullow's exploration write-off
for the first half of 2006 is expected to be of the order of £18 million subject
to any further technical work.  This write-off is principally associated with
unsuccessful exploration activities in Gabon, Pakistan and Angola and new
ventures activity during the period.

Capital Expenditure

During the first half of 2006 Tullow invested a total of £151 million in
development and exploration activities.



Planned capital investment during 2006 is of the order of £310 to £320 million,
of which approximately 75% will be spent on ongoing development and production
enhancement activities in the UK, Gabon, Congo (Brazzaville), Cote d'Ivoire,
Equatorial Guinea, Pakistan and Bangladesh, with the balance focused on
exploration activities.



Net Debt

Net Debt at 30 June 2006 was £78.8 million, inclusive of all cash balances.

Hedging reflected in Income Statement (IAS 39)

At 30 June 2006 the Group's derivative instruments had a negative mark to market
of approximately £144.0 million, of which a large portion relates to contracts
acquired as part of the acquisition of Energy Africa in May 2004.

While all of the Group's derivative instruments currently qualify for hedge
accounting, a charge of approximately £11.0 million (£8.0 million after
taxation) will be recognised in the income statement for the first half of 2006.
A substantial portion of this charge relates to unrealised changes in the time
value of the hedges due to the impact of rising oil prices on the fair value of
the hedge instruments, most notably collars. The ineffectiveness portion of the
charge arises from factors inherent in the hedges, including crude oil discounts
relative to Brent, timing of oil liftings and field performance.

Hedging Summary

At 23 June 2006 the Group's hedge position to the end of 2007 is as follows:


                                           H2 2006        H1 2007        H2 2007

Oil Hedges**
         Volume - bopd                      11,717          9,000          9,000
         Average Price* - $/bbl               45.2           52.4           52.2
Gas Hedges                                 H2 2006        H1 2007        H2 2007
         Volume - mmscfd                      60.0           28.8           13.8
         Average Price* - p/therm             45.4           66.7           50.6

                                                             




* Average hedge prices are based on market prices as at 23 June 2006 and
represent the current value of hedged volumes

** The oil hedges include 4,000 bopd at an average price of $29.2/bbl acquired
as part of the Energy Africa transaction.

Operational Update

This Operational Update summarises recent key activities in the Exploration (E),
Appraisal (A), Development (D) and Production (P) assets of Tullow Oil plc.

1) NW EUROPE CORE AREA

UK



In the UK North Sea, Tullow's principal interests are in the Southern Gas Basin.
During the first half of 2006 Tullow continued its high level of activity in the
region, participating in three new exploration discoveries and drilling two
successful development wells.



The commercial environment for producers within the UK Gas market remains
extremely positive with very attractive winter gas pricing and seasonal price
differentials at record levels. Tullow seeks to manage its production and
commercial activities to facilitate delivery of gas into the UK market during
periods of maximum winter demand.


Working interest production(1)                    H1 2006 Average (boepd)     Current Production (boepd)


Thames-Hewett Area                                         12,400                      7,000(2)
CMS Area                                                   16,000                       19,000
UK Total                                                   28,400                       26,000

(1) Includes condensate

(2) Note that 9,000 boepd of production from Horne & Wren is shut in for the
summer months

Schooner (P/D) (Tullow 90.35%) and Ketch (P/D) (Tullow 100%)

Production from the first well of the redevelopment programme, Schooner-10,
commenced on 16 May at a rate of 22 mmscfd.  As part of the production
optimisation programme, Schooner-8 was also returned to production and is
currently producing approximately 6 mmscfd.  Field uptime has been maintained at
over 98% and the production capability of the fields is now approximately 65
mmscfd.

The Ensco-101 rig has now moved to the Ketch field to drill three development
wells and to carry out a concurrent campaign of stimulation and remedial work on
the existing production wells.  The first well, Ketch-7, is currently drilling
and is expected to be completed in September.

A second rig, the Borgsten Dolphin, is currently drilling the NW Schooner
Extension appraisal well which is expected to complete in September. This 100bcf
opportunity has been brought forward to minimise weather downtime by drilling
during the summer months and, if successful, will be brought on production prior
to the winter 2007/08 period.

Horne & Wren (P) (Tullow 50%)

In May, with winter/summer gas price differentials reaching unprecedented
levels, the decision was taken to shut in the Horne & Wren fields during the
summer months of 2006 and 2007 to maximise production over the next two winter
periods. While having the overall effect of reducing Tullow's annualised UK gas
production by approximately 3,000 boepd, this strategy adds significant value
and contributes additional gas to the UK market during periods of peak winter
demand.



Delilah (P/D) (Tullow 51.68%*)

The Delilah 48/30-16 subsea well, which failed in mid-2003, was horizontally
sidetracked and put on stream in March 2006. The well is currently producing at
25 mmscfd and is expected to add over 10 bscf of incremental reserves to the
field.



* This includes a 12.87% equity interest which Tullow has contracted to purchase
from Centrica.  This transaction is expected to complete in July.



Kelvin (D) (Tullow 25%)

The Kelvin field, discovered in 2005 with the K3 well, is expected to be
developed using a minimum-facilities platform with a pipeline to the central CMS
hub at Murdoch. The target for first gas is December 2007. It is anticipated
that the Kelvin facilities will also act as a hub for the development of any
future discoveries in the region, including the recent K4 discovery.



UK Exploration

Over the last five years, Tullow has drilled seven consecutive successful
exploration wells in the CMS area including three in 2006.



Humphrey (E) (Tullow 35%)

The Humphrey exploration well discovered gas in early 2006. A decision on
commerciality is planned for the third quarter of this year following technical
and economic evaluations.



Cygnus (E) (Tullow 35%)

The Cygnus exploration well in block 44/12-2 discovered gas in several reservoir
zones and was suspended in May following a successful well test of the principal
target. The results are currently being evaluated to determine the commerciality
of the discovery.



K4 (E) (Tullow 22.5%)

The K4 exploration well, 44/23b-13, discovered gas bearing reservoir sands in
the targeted Lower Ketch carboniferous interval and significant upside potential
has been identified. Information from the well will now be integrated with
existing data to determine the full extent of the accumulation and future
development is likely via the planned Kelvin facilities, which are only five
kilometres away.  Any development is expected to include a further appraisal
well to fully assess the ultimate reserve potential of the discovery.



The K4 and Kelvin discoveries provide significant encouragement for further
exploration on adjacent prospects, with both the Cameron and Harrison prospects
identified for drilling over the next 12 months.





2) AFRICA CORE AREA





In Africa, Tullow has production and development interests in Gabon, Cote
d'Ivoire, Congo (Brazzaville), Equatorial Guinea and Namibia. Tullow also has
exploration interests in Morocco, Mauritania, Senegal, Cameroon, Uganda,
Equatorial Guinea, Angola and Cote d'Ivoire.  In the first half of 2006 Tullow
continued its development and drilling activities on its producing assets,
whilst maintaining an active exploration and new ventures programme throughout
the region with a number of West African opportunities identified. The
successful production and development operations in the Group's African assets
continue to contribute to strong production growth.  Tullow's production in
Africa is expected to exceed 40,000 boepd in 2007.




Working interest production                       H1 2006 Average (boepd)     Current Production (boepd)
Congo (Brazzaville)                                        6,200                        5,700
Cote d'Ivoire                                              6,200                        6,700
Equatorial Guinea                                          5,200                        5,900
Gabon
    Tchatamba                                              7,000                        7,000
    Niungo                                                 5,400                        5,400
    Other Gabon                                            3,800                        3,800
Africa Total                                               33,800                       34,500



Republic of Congo (Brazzaville)



M'Boundi Field (P/D) (Tullow 11%)

The development and infill drilling programme on the M'Boundi Field is ongoing
with 11 wells drilled so far this year. These wells included a number of
important delineation wells, which have defined the Northern and Southern limits
of the field, thereby better defining the oil initially in place range for the
field. Seven of the wells drilled have been completed and are now contributing
to the field production, which exceeded 60,000 bopd during the first quarter of
2006. The average gross field production is now 52,000 bopd, with 45 wells
currently on stream. Four rigs and a workover rig are currently in operation
within the field.  The drilling of water injection wells is now under way and
the workover rig is preparing to commence the drilling of the water producing
and salt leaching wells. It is anticipated that after the initial results of the
water injection project are assessed, the decision will be made to expand water
injection to the full field, thereby optimising the field recovery factor. The
blending and export of M'Boundi crude with the higher quality N'Kossa blend
commenced in January thus significantly improving per barrel realisations.



Equatorial Guinea


Ceiba Field (P/D) (Tullow 14.25%)

The infill drilling programme that commenced in 2005 has continued. So far this
year one production well and one water injector have been drilled and four top
hole sections have been batch drilled - three producers and one injector. The
programme is expected  to result in a gross average field production of around
40,000 bopd for 2006.



Okume Complex Development (D) (Tullow 14.25%)

The Okume Complex comprises the Okume, Oveng, Ebano and Elon fields. Two Tension
Leg Platforms (TLPs), constructed in Korea, were installed on the deepwater
fields Okume, Ebano and Oveng in April and four jackets and two topsides were
installed on the Elon field. All of the Phase I work was completed during April,
ahead of schedule. The next installation phase comprising pipelines, tie backs
and central processing facilities will occur in September. The development
remains on budget and on schedule for first oil by the end of 2006. Initial
production is expected to reach 30,000 boepd in early 2007 building to a plateau
of 60,000 boepd by the end of 2007. Oil will be blended with Ceiba production
and exported via the Ceiba FPSO, leading to greater operating and production
efficiency.



Cote d'Ivoire



East Espoir Field (P/D) (Tullow 21.3%)

Following the EP-7 and EP-8 infill production wells, which were put on
production in late 2005, the final two wells in the East Espoir infill
programme, EP-9 and EP-10, were completed in early 2006. These wells have
produced above expectations, increasing the average field production to in
excess of 32,000 boepd, the highest level recorded since production commenced in
2002.



West Espoir Development (D) (Tullow 21.3%)

Progress on the West Espoir development project is well advanced and the first
of three production wells was spudded in late May. The well has intersected the
reservoir sands including an additional upper reservoir sand that will also be
completed for production.   First oil is scheduled for August 2006 with further
drilling enabling production to build to 10,000 boepd during 2007.



Gabon



Avouma (D) (Tullow 7.5%)

The Avouma development in the Etame block, adjacent to the producing Etame
field, is progressing well.   Development drilling is expected to commence in
the third quarter of 2006 with first oil production scheduled for the end of the
year. In addition, an application for a development licence for the Ebouri
discovery in the same block was lodged in June. Tullow has a 7.5% back-in option
on both of these fields.



Niungo (P/D) (Tullow 40%)

Following the evaluation of the exploration, appraisal and development wells
drilled in 2005, a new programme of eight wells is scheduled to commence in
September. The initial aim is to drill several development wells to increase
production to the facilities limit (circa 15,000 bopd), followed by a number of
appraisal wells to assess possible Northern and Southern extensions of the
field.  As in 2005, further wells may be added in the event of positive results.
 As part of this programme up to two exploration wells are also planned for
early 2007 on the adjacent Nziembou licence. The prospects in this block lie on
trend with the Niungo field.



Tchatamba (P/D) (Tullow 25%)

Tchatamba production has been maintained at a gross rate of 28,000 boepd with
very low down time since the beginning of the year. Plans are in place for a
workover programme in the third quarter to maintain production at these levels.



Gabon Exploration (E)

During the first half of 2006, Tullow participated in three offshore exploration
wells, none of which discovered commercial quantities of hydrocarbon. A further
two Tullow-operated offshore wells are planned for 2007, most likely in the
Kiarsseny and Azobe licences and a jack-up rig has been contracted for this
programme.



The Azobe licence, in which Tullow previously held a 35% non-operated interest,
has been renewed for up to six years, with Tullow as operator and holding a 60%
interest. The block is situated close to the Cap Lopez export terminal, which
may facilitate a fast-track development of an undeveloped oil discovery.





Namibia



Kudu (D/A)  (Tullow 90%)

Good progress has been made in relation to both the first phase of
commercialisation of the Kudu gas field via a gas-to-power generation project
and the appraisal of the significant upside potential of this project in
offshore Namibia.



The Gas Sales Agreement negotiations have continued in parallel with the Power
Purchase Agreement negotiations between Nampower and Eskom.  Invitations to bid
for the various construction activities are expected to be issued during 2006.



Plans for the two well appraisal programme are progressing well and drilling is
scheduled to commence in early 2007.



In parallel with the ongoing planning for the development of Kudu, the regional
energy market in southern Africa continues to exhibit strong growth. In Namibia,
this has required the development of a range of contingency measures to ensure
ongoing adequacy and security of power supplies. Successful development of Phase
I of Kudu has the potential to make a very important contribution to Namibia's
power needs and Tullow places a high priority on achieving project sanction at
the earliest opportunity.



Uganda



Basin-wide exploration campaign (Tullow 50%)

Tullow has the leading acreage position throughout the Albertine Basin,
comprising over 12,000 square kilometres across three licences.



With this strong position, Tullow is able to gain a considerable overview of the
region. The Group works closely with the operators to optimise the basin-wide
exploration campaign, ensuring that a systematic programme addresses the
extensive portfolio of plays, leads and prospects already identified. Although
basic commerciality of the Waraga discovery has been demonstrated by the ongoing
well test, Tullow's principal objective remains to determine and understand the
potential for material commerciality basin-wide.



Block 2 - Exploration wells and production testing (E) (Tullow 50%)

Since January 2006 Tullow has made significant progress in proving up a
substantial new hydrocarbon province in the Albertine Basin in Uganda with three
oil discoveries and a very encouraging well test completed to date.



Following the Mputa-1 discovery in January and the Waraga-1 discovery in March,
the Mputa-2 well, a 3km step-out, was drilled in May.  Data acquired from the
well indicates that the Mputa-1 reservoir sands may be laterally continuous and
that in addition to the structural traps encountered in the previous wells,
there is also a working stratigraphic play in the area. The Mputa-2 well was
cased and suspended on 31 May 2006.



Production testing from the first of three separate reservoir zones of the
Waraga-1 discovery well commenced on 22 June 2006 and all three zones have now
been tested.  The aim of the tests was to assess the formation productivity and
to acquire good quality fluid samples.  The key results from the ongoing tests
were as follows:


 Well Test      Perforation          Main flow rate       Max flow rate and choke    Oil Quality
               Interval (m)          and choke size                size             (degrees API)                       
                       
                                     
    #1      1,888 - 1,894         1,500 stb/d (36/64')       4,200 stb/d (1')            33.8
    #2      1,782 - 1,794         2,400.stb/d (36/64')       4,200 stb/d (1')            33.8
    #3      1,680 - 1,710         2,115 stb/d (36/64')         Not Complete              18.5



The results show that all three reservoirs penetrated by the Waraga-1 well are
of excellent quality with multi-Darcy permeability. The crude from the upper
zone (#3) was approximately 19 degrees API, likely indicative of limited
bio-degradation expected at these shallower depths. Significantly, the crude
quality from the two lower zones (#2 and #1) is good quality light but waxy oil
(33-34 degree API) with a low gas to oil ratio. This is very encouraging from a
commerciality perspective.



Block 2 - Gravity and Seismic Survey (E) (Tullow 50%)

An onshore gravity survey to the north of Block 2 was completed in June 2006.
The survey indicates several gravity highs of exploration potential similar to
Mputa and Waraga. The results are being used to define the 2D seismic survey
planned for later in the year. The option of acquiring 3D seismic data over the
Mputa and Waraga areas is currently being considered to better define the
oil-bearing reservoir distributions and further prospects.



Block 3A - Kingfisher Exploration Well (E) (Tullow 50%)

The higher-risk wildcat exploration well to test the large Kingfisher structure
is planned for early August using the Dafora F-200 rig which will start to move
from the M'Puta-Waraga area by barge this week. The wildcat will target a large
fault-closed and north-westerly dipping structure. The well will calibrate the
stratigraphy in this unexplored part of the basin.  As such, it may not have
well-developed reservoir-seal configurations and the seismic definition of the
basement is unclear, so exploratory sidetracking is therefore a possibility. The
projected total depth of the well is up to 4,000m and it is expected to take
approximately two months to drill.



The forward programme in Block 3A is contingent on the results of the Kingfisher
wildcat, however a number of prospects in the Block have been identified.



Forward programme for Uganda



Following the very encouraging results from the Waraga-1 well, the plan for
future drilling and seismic surveys in the area will be reviewed with our
partners with a view to accelerating the exploration and appraisal programme for
the Albertine Basin. This campaign is likely to run into 2008 and possibly
beyond, and will address a mix of technical success factors, geological plays,
high-risk wildcats (e.g. Kingfisher-1), lower-risk play-extenders (e.g.
Waraga-1) and appraisal of discoveries (e.g. MPuta-2).



The campaign will also methodically build on historic reconnaissance gravity
surveys and 2D seismic surveys, by following through with higher resolution
seismic acquisition and higher quality seismic processing as we focus on the
most prospective targets.



The exploration and appraisal campaign will inevitably record a mix of positive
and negative data as we further extend the boundaries of our knowledge of the
Albertine Basin. Overall however, the indications thus far remain very positive.





Cameroon



Ngosso Permit (E)  (Tullow 40%)

In February Tullow completed a 410 square kilometre 3D seismic survey over the
Ngosso permit. This block contains three existing unappraised oil discoveries,
Narendi, Odiong and Oongue and numerous exploration opportunities. The survey
data will provide information for selecting locations for a two well programme
likely to be undertaken during 2007.



New Ventures



Tullow maintains an active new ventures programme in Africa and during the
period announced its first entry into Madagascar, with a 50% operated interest
in Block 3109, situated onshore in the Morondava Basin. Work on this block is
due to commence in August 2006 with a 6,700 line kilometre aero-gravity and
magnetic survey; this will help to identify prospective areas for focused
seismic acquisition in 2007.



The group is also negotiating the award of a number of new development and
exploration licences in West Africa and further announcements will be made in
due course.





3) SOUTH ASIA CORE AREA





In South Asia, Tullow has exploration, development and production interests in
Pakistan, Bangladesh and India. Activities in the region have increased
significantly in 2006 with extensive seismic programmes in Pakistan and India
and recent development activities on Bangora (Bangladesh) culminating in first
production from the field and the successful drilling of the first appraisal
well on the structure. All of these exploration and development ventures have
the potential to materially enhance reserves and revenue from the region.




Working interest production                       H1 2006 Average (boepd)     Current Production (boepd)
Pakistan                                                    200                          200
Bangladesh                                                  800                         2,500
South Asia Total                                           1,000                        2,700



Bangladesh

Block 9, Bangora-1 (A) (Tullow 30%)

The Bangora/Lalmai appraisal programme, approved in early 2005, is now well
under way.   Production from the Bangora-1 well commenced on 9 May and the well
is flowing at a stabilised rate of 50 mmscfd.  An extensive 3D seismic survey
was completed in February. All data have been processed and initial
interpretation has resulted in selection of four appraisal well locations.  The
first appraisal well (Bangora-2), a two kilometre step-out from Bangora-1, was
spudded on 22 April and reached the total depth on 14 June. The well encountered
good quality gas bearing reservoirs and has demonstrated sand continuity to the
south of the discovery well. The well has been successfully completed over the
main reservoir units and is likely to be tied in to the Bangora production
facilities in the third quarter 2006. The drilling rig will now move to drill
the Bangora-3 well, a seven kilometre step-out to the south, that has the
potential to add materially to the reserves associated with the Bangora-Lalmai
structure.  The plan is to continue the long-term test and appraisal programme
with the ultimate aim of achieving a declaration of commerciality during 2006.



Blocks 17&18 (E) (Tullow 32%)

A 2D marine seismic survey on Blocks 17&18 was completed in April 2006 and the
data are currently being processed. Tullow has signed a farmout agreement with
Total and an assignment of interest application has been submitted to the
Government of Bangladesh.  An application for an extension is also pending with
the Government. This extension would allow time to carry out an extensive
seismic survey and drilling programme on the blocks.



Pakistan



Chachar (D) (Tullow 75%)

The development project on Chachar is well advanced. The first of two
development wells was spudded on 21 May and having encountered the reservoir
sands has been suspended as planned. The second well was spudded on 15 June and
is scheduled to reach its target depth in July.  A contract has been awarded for
engineering, procurement and construction of field facilities and production is
scheduled to commence in the fourth quarter 2006.



Kohat (E) (Tullow 40%)

A 2D seismic survey was completed on 18 April and a total of 311 kilometre of
data have been acquired. Data processing is ongoing and prospects have already
been identified. Tullow plans to commence drilling the first well on this highly
prospective block in the second quarter 2007.

Nawabshah (E) (Tullow 30%)

The Shahpur Chakar-1 exploration well, in the Nawabshah Block in Pakistan, was
spudded on 21 February and reached a total depth of 3,385m.  Although the well
encountered shows during drilling, all viable reservoirs proved to be water wet.

India

Block CB-ON/1 (E) (Tullow 50%)

The 600 kilometre seismic survey, which commenced in December 2005, is
continuing and has been extended to 1,500 kilometre to more precisely delineate
a number of drilling leads at both the Tertiary and deeper geological intervals.
  Data processing has commenced and it is anticipated that a multi-well drilling
on this high potential block will commence in the first quarter 2007.

                                      ENDS

FOR FURTHER INFORMATION CONTACT:


Tullow Oil plc                     Citigate Dewe Rogerson              Murray Consultants
([phone])                 ([phone])                  ([phone])
Aidan Heavey                       Martin Jackson                      Joe Murray
Tom Hickey

Chris Perry



CONFERENCE CALLS

Conference calls hosted by Aidan Heavey (Chief Executive), Paul McDade (Chief
Operating Officer), Angus McCoss (General Manager Exploration) and Tom Hickey
(Chief Financial Officer) will be held today at 09:30 (BST) and 15:00 (BST):



09:30 UK/European Conference Call

For UK and international participants please call [phone] and request
to be connected to the Tullow Oil teleconference.

For participants in Ireland, please call [phone]

A replay facility will be available from one hour after the conference call for
seven days.  Please call [phone], access code: 7496757#.

15:00 US Conference Call

Please call [phone] and request to be connected to the Tullow Oil
teleconference.

A replay facility will be available from one hour after the conference call for
seven days.  Please call [phone], access code: 5141506.



Disclaimer

This announcement contains certain operational and financial information in
relation to 2006, which is subject to final review and has not been audited.
Furthermore it contains certain forward-looking statements that are subject to
the usual risk factors and uncertainties associated with the oil & gas
exploration and production business. Whilst the Group believes the expectations
reflected herein to be reasonable, the actual outcome may be materially
different owing to factors either within or beyond the Group's control, and
accordingly no reliance may be placed on the figures contained in such forward
looking statements.



For further information please refer to our website at www.tullowoil.com




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