Highlands Natural Resources Regulatory News (HNR)

30 May 2006 07:03

Tullow Oil PLC30 May 2006 News release Tullow Oil Plc - Uganda Activity Update 30 May 2006 - The following announcement has been released by Hardman Resourcestoday: Uganda: Block 2 - Mputa-2 Appraisal Well As of midnight on Saturday 27 May, Mputa-2 has been cased and suspended as apotential future oil producer. This follows the completion of extended wirelinelogging activities after some equipment malfunctions. The results of Mputa-2 confirm that the upper reservoir sands intersected inMputa-1 and Waraga-1 are laterally extensive, but at this location are waterwet. Pressure data indicates that the hydrocarbon column height in the upperzone of the Mputa field is potentially of the order of 100 metres, although atthis upper level, the Mputa and Waraga structures do not have a common oil leg.The implications of this pressure data and the fact that the target sands camein over 100 metres shallow to prognosis are both positive to the interpretationof the Mputa Field; the new data is being integrated with existing models inorder to provide estimates of oil in place for these upper sands shortly. Theextent to which these sands will flow commercial volumes of oil will bedetermined when flow testing operations begin on Waraga-1, expected to commencemid June. Oil samples have been recovered from the lower reservoir zone in Mputa-2, whichcan be correlated to similar oil bearing zones in both Mputa-1 and Waraga-1.The presence of oil saturated sands in these basal units in all wells drilled todate implies an extensive stratigraphic trapping mechanism at this level. Thegross interval of these units is variable and there does not appear to bepressure communication between them. But contained within the sequence areobvious oil bearing zones of around 5 metres thickness that will be flowed inour testing programme at Waraga-1 to determine whether they are capable ofsustaining commercial flow rates. The information derived will then determinewhich of either Mputa-1, or Mputa-2, or both, will be subsequently tested.Assessing where the thicker sand units and more extensive net pay exists inthese sequences will be key to their commercial potential and the need for 3Dseismic acquisition is currently being evaluated. The results from the three discovery wells and the testing programme will beintegrated to define the reserve estimates, commerciality and potentialdevelopment scenarios for the onshore area. Planning for additional exploration/appraisal wells onshore and a test of a prospect just offshore has commencedwith onshore drilling scheduled for 4Q 2006. Plans for the acquisition offurther 2D seismic in the north of the block are also well advanced. For further information contact: Tullow Oil plc Citigate Dewe Rogerson Murray Consultants(+44 20 7333 6800) (+44 207 638 9571) (+353 1 498 0300)Aidan Heavey Martin Jackson Joe MurrayTom Hickey 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. In addition to onshore Block 9, Tullow also operates Blocks 17/18 offshoreBangladesh where a 2d seismic survey recently completed. Tullow has applied foran extension to this licence, to permit a sizable work programme to be carriedout, and has requested that part of Tullow's interest is assigned to Total.Both are currently awaiting Government approval. 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