Highlands Natural Resources Regulatory News (HNR)

23 May 2006 07:04

Tullow Oil PLC23 May 2006 News release Tullow Oil Plc - Mputa-2 Drilling Update 23 May 2006 - Hardman Resources, the operator of the Mputa-2 exploration well inUganda, in which Tullow Oil Plc (Tullow) is a 50% partner, today issued thefollowing press release. Uganda: Block 2 - Mputa-2 Appraisal Well Mputa-2 reached a total depth of 1,344 metres at 9:30am, Saturday 20 May,shallower than the planned depth for the well of 1,500 metres, as all horizonswere intersected high to prognosis. At midnight on Monday 22 May wireline logs were being run for evaluationpurposes. Mputa-2 is a step-out appraisal well 3 kilometres from the Mputa-1 discovery,with two principal objectives; the first to determine the lateral extent andpotential of the upper oil bearing reservoir in Mputa-1 and the second to targetthe potential for extensive stratigraphic trapping of the thicker lower zoneintersected in Mputa-1. The well confirmed the lateral extent of the upper reservoir sands although thisinterval appears to be water wet in Mputa-2. A core was taken which willdetermine reservoir parameters useful for assessing production potential atMputa-1. The widespread lateral extent of this reservoir unit is encouragingfor the potential of the Mputa-1 discovery. Hydrocarbon shows were encountered in sands in the lower target zone of Mputa-2and oil samples have been recovered. While this sequence appears to have areduced nett:gross and thus thinner potential reservoir units compared with theequivalent sands encountered at theMputa-1 location, the presence of both reservoir and oil at such a step-out ishighly encouraging for the exploration of the extensive basin. A decision onwhether to case the hole for future testing or completion will be made shortly. Results from Mputa-2 will be integrated with the results from Mputa-1 andWaraga-1 to determine the reserve potential, commerciality and potentialdevelopment plans for the fault block which contains the Mputa-1 and Waraga-1oil discoveries. Planning for the drilling of additional exploration/appraisalwells and the acquisition of further seismic is in progress. Equipment mobilisation is currently underway to flow test the Waraga-1 oildiscovery utilising the Eagle Drill Rig. Testing operations are expected tocommence mid June. Commenting today, Aidan Heavey, Chief Executive of Tullow said: "The Mputa-2 appraisal well was designed to enhance our understanding of theextent of reservoirs encountered by the Mputa-1 discovery and to target anadditional stratigraphic play. With the lateral extent of the reservoirconfirmed and live oil recovered, we are greatly encouraged by the results fromthis well which now need to be fully evaluated and integrated with the resultsfrom the Mputa-1 and Waraga-1 discoveries to help determine ultimate reservepotential, commerciality and further exploration potential. We are however inthe early stages of exploring this new basin and while the results to date arevery positive, further work programmes are required to determine the fullpotential of the basin. These programmes include the testing of the Waragadiscovery well in June and the drilling of the Kingfisher prospect in Block 3Ain July." For further information contact: Tullow Oil plc Citigate Dewe Rogerson Murray Consultants(+44 20 8996 1000) (+44 20 7638 9571) (+353 1 498 0300)Aidan Heavey Martin Jackson Joe MurrayTom HickeyChris Perry Notes to Editors Tullow is a leading independent oil & gas, exploration and production group,quoted on the London and Irish Stock Exchanges (symbol: TLW) and is aconstituent of the FTSE 250 Index. The Group has interests in approximately 90exploration and production licences in 15 countries and focuses on three coreareas: NW Europe, Africa and South Asia. Tullow's NW Europe interests are primarily focused on gas in the UK SouthernNorth Sea where it has significant interests in the Caister-Murdoch System andthe Thames/Hewett areas and operates over 60% of its production. In Africa, Tullow has production and exploration in Gabon, Cote d'Ivoire, Congo(Brazzaville) and Equatorial Guinea and a large gas field development andappraisal programme in Namibia. Tullow also has exploration programmes inMauritania, Senegal, Cameroon, Uganda, Madagascar and Angola. In South Asia, Tullow has production and exploration interests in Pakistan andBangladesh and high impact exploration activities in India. For further information please refer to our website at www.tullowoil.com ENDS This information is provided by RNS The company news service from the London Stock Exchange