Exploration Update

RNS Number : 1560M

Tullow Oil PLC

19 May 2010

 



News Release

 

Exploration and Appraisal Update

19 May 2010 - Tullow Oil plc (Tullow) announces that the Nzizi-3 well in Uganda Block 2 has successfully appraised the Nzizi gas field and that the Noix de Coco-1 well in Gabon has encountered wet gas but in poor quality reservoir sandstones.

Nzizi-3 appraisal well results

The Nzizi-3 appraisal well was drilled 1.2 kilometres up-dip and to the east of the Nzizi-2 well in the Kaiso-Tonya region of Uganda Block 2. The well was drilled to a total depth of 974 metres and results of logging and sampling confirmed a total of 9 metres of gas pay, and 16 metres of oil pay. As expected, the gas pay includes a 4 metre zone in communication with the Nzizi-2 well. The oil pay includes a new discovery in the basal sands where 11 metres of net pay was encountered without an oil-water contact. The oil discovery will be the subject of further evaluation. Reservoir quality in each of these sandstone intervals is excellent.

The successful outcome of this well proves its viability as a future gas producer for the integrated power project scheduled for first production in late 2011. The Nzizi-3 well will now be suspended and the rig will move to the Waraga-1 discovery well to prepare it for future testing.

Tullow has interests in three licences in the Lake Albert Rift Basin in Uganda. Tullow operates Block 2 with a 100% interest and has a 50% interest in Blocks 1 and 3A which are operated by Heritage Oil (50%).

Noix de Coco-1 well result

Noix de Coco-1, located in the Azobe Permit offshore Gabon some 45 km northeast of Port Gentil, has encountered wet gas within the Cretaceous interval. Sandstones within the main objective were however of poor quality at this location and the well will be plugged and abandoned.

The well, drilled to a total depth of 2,640 metres, was the final commitment well in the current exploration period in the Azobe Permit. The results will be followed up with detailed technical work prior to deciding on the forward work programme for the licence. Tullow operates and has 60% interest in the Azobe Permit partnering with MPDC Gabon (40%).

Commenting today, Angus McCoss, Exploration Director, said:

"The Nzizi-3 appraisal well takes us a significant step towards first gas production in Uganda by the end of 2011. We continue to work closely with the Government of Uganda on plans for accelerating our exploration and appraisal activities in the region and look forward to commencing a multi-well programme with a second rig in Block 1 next month. A third rig is actively being sought for drilling later in 2010.

"Although Noix de Coco-1 notably encountered wet gas, the poor reservoir at this location rules out commercial development.  The results of this well will be worked into the regional framework and forward plans will be made to further high-grade this otherwise prospective Northern Gabonese Basin."

FOR FURTHER INFORMATION CONTACT:

Tullow Oil plc ([phone]) Angus McCoss James Arnold

Citigate Dewe Rogerson ([phone]) Martin Jackson George Cazenove

Murray Consultants ([phone]) Joe Murray Ed Micheau

Notes to Editors

Tullow is a leading independent oil & gas, exploration and production group, quoted on the London and Irish Stock Exchanges (symbol: TLW) and is a constituent of the FTSE 100 Index. The Group has interests in over 85 exploration and production licences across 22 countries and focuses on four core areas: Africa, Europe, South Asia and South America.

In Africa, Tullow has production in Gabon, Côte d'Ivoire, Mauritania, Congo (Brazzaville) and Equatorial Guinea and two large appraisal and development programmes in Ghana and Uganda. Tullow also has exploration interests in Gabon, Côte d'Ivoire, Liberia, Sierra Leone, Mauritania, Senegal, Congo (DRC), Tanzania, Madagascar, Namibia and Angola.

Tullow's European interests are primarily focused on gas in the UK Southern North Sea where it has significant interests in the Caister-Murdoch System and the Thames area. The company also has interests offshore the Netherlands.

In South Asia, Tullow has exploration and production in Pakistan and Bangladesh. In South America, Tullow has exploration interests in Guyana, French Guiana and Suriname.

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

 

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