25th Feb 2008 07:01
Tullow Oil PLC25 February 2008 News release Ghana and Uganda Exploration Update 25 February 2008 - Tullow Oil plc (Tullow) announces an oil discovery on theOdum-1 exploration well in Ghana and the decision to suspend the Ngassaexploration well and re-drill from an alternative location. ODUM-1 OIL DISCOVERY (Tullow 22.9%) Odum-1, the second exploration well drilled on the West Cape Three Pointslicence offshore Ghana, has discovered a commercial light oil accumulation basedon the results of drilling, wireline logs and a sample of the reservoir fluid.The well, in water depths of 955 metres, has been drilled to a depth of 3,387metres and has encountered a gross oil column of 60 metres and 22 metres of netpay. Samples recovered from the reservoir indicate an oil gravity ofapproximately 29 degrees API. The discovery is a stratigraphic trap in a Campanian age fan system and opens asecond new play fairway in the Tano Basin. Further prospectivity in this newCampanian play has already been identified in both the West Cape Three Pointsand Deepwater Tano licences. Following completion of drilling operations on Odum-1, the well will besuspended as a future development well and the Songa Saturn drillship will moveto drill Mahogany-2, the next appraisal well on the Jubilee field. While appraisal of the upside of Jubilee is ongoing, the field partnership isalso working on plans for a phased development of the field. The Eirik Raudefifth generation semi-submersible has been contracted for a minimum of threeyears and is a critical element in our plan to target first oil in 2010. NGASSA-1 TO BE SUSPENDED AND RE-DRILLED FROM NEW LOCATION (Tullow 100%) The Ngassa-1 exploration well in Block 2 Uganda commenced drilling on 17November 2007 and the well has reached a total depth of 1,635 metres. Due topersistent borehole instability, Tullow has decided to suspend the well andre-drill from an alternative location. Drilling difficulties on Ngassa-1 were accentuated by the necessary high-angledeviation of this long-reach well through thick claystones close to a majorfault zone. The well trajectory was selected on the best available 2D seismicdata and on the basis of the location's minimal environmental footprint. Whilst drilling the shallow section, the well discovered six net metres of gasbearing sands. The thick claystone seals encountered provide good encouragementabout the underlying oil prospectivity. The substantial primary and secondary oil objectives remain undrilled so it isnow planned to re-drill the well from a location where subsurface conditions areexpected to be more benign. The new well design will benefit considerably fromthe recently acquired 3D seismic and the information gained in the first hole.This information, combined with the new location, will enable the well to bedrilled with a less acute trajectory and to be steered clear of identifiedfaults. Options include a near term onshore deviated well and an offshorevertical well. The Nabors 221 rig will now be moved to Block 3A to drill the Kingfisher-2 wellduring the second quarter of the year. Commenting today, Aidan Heavey, Chief Executive of Tullow said: "The discovery of oil in the Odum well continues the success of our explorationcampaign in Ghana. This commercial discovery is located only 13 kilometres fromthe larger Jubilee Field and has opened up a new prospective play in the region.While the technical challenges associated with the Ngassa well aredisappointing, it remains a valid high impact prospect and the new location, 3Dseismic and experience of drilling Ngassa-1 should enable us to successfullydrill it as part of Tullow's Lake Albert Rift Basin campaign." 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 100 Index. The Group has interests in over 100exploration and production licences across 23 countries and focuses on four coreareas: Europe, Africa, South Asia and South America. Tullow's European 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 70% of its production. In Africa, Tullow has exploration and production in Gabon, Cote d'Ivoire,Mauritania and Equatorial Guinea and two large appraisal and developmentprogrammes in Ghana and Uganda. Tullow also has exploration interests inMauritania, Senegal, Congo (DRC), Tanzania, Madagascar, Namibia and Angola. In South Asia, Tullow has exploration and production in Pakistan and Bangladeshand high impact exploration activities in India. In South America Tullow has high impact exploration interests in Trinidad andTobago, French Guiana and Suriname. For further information please refer to our website at www.tullowoil.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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