14th Jun 2005 07:00
Tullow Oil PLC14 June 2005 News release Tullow Oil plc - UK Business Unit Update 14 June 2005 - Tullow Oil plc (Tullow) today announces updates on three UKBusiness Unit assets. Tullow is a leading independent oil and 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 over 90 productionand exploration licences in 16 countries and is currently focusing on three coreareas: NW Europe, West Africa and South Asia. A full update on the rest of Tullow's activities will be provided in our TradingStatement and Operational Update in July. HIGHLIGHTS • First gas from the Tullow operated Horne & Wren development in the Southern North Sea • Successful Opal exploration well (formerly West Boulton) • Completion of the sale of the Alba and Caledonia assets to Itochu Corporation FIRST GAS FROM HORNE & WREN Natural gas production from Horne & Wren, Tullow's first operated development inthe UK, commenced on 9 June 2005 and reached a stabilised flow rate of 60mmscfd. The flow rate will be ramped up to the plateau rate of 90 mmscfd overthe coming days. The development, a 50:50 joint venture between Tullow and Centrica, comprisestwo horizontal wells, a normally unmanned installation and a pipeline to theThames platform in which Tullow has a 67% interest. The gas is processed atThames and compressed for export to the Tullow-operated Bacton Terminal. Tullow first acquired minority interests in the Horne & Wren discoveries from BPin 2001 and subsequently entered into a series of transactions that resulted inTullow operating the development with a 50% interest. The fast-trackdevelopment was initiated following project sanction in June 2004 and the FieldDevelopment Plan was approved by the DTI in October 2004. Production from the Horne & Wren wells brings the throughput of the Thamesinfrastructure to over 190 mmscfd, a four fold increase since early 2004. Thisincrease further reduces the unit operating cost of this regional hub andextends the life of the Thames facility, thereby enhancing the value of Tullow'sother interests in the Thames Area fields. OPAL GAS DISCOVERY (FORMERLY WEST BOULTON) The Opal exploration well (43/25a-2W), operated by Gaz de France Britain, hassuccessfully encountered gas bearing reservoir sands in the targetedCarboniferous section. Tullow currently has a 46% interest in the discoveryalthough this may revert to the original equity of 30% if certain back-in rightsare exercised. The discovery, located within Tullow's Caister Murdoch System ("CMS") core areawas suspended on 9 June 2005. Information obtained from the well will now beintegrated with existing data to determine the extent of the accumulation and tocomplete pre-development studies. In the event of a positive outcome to thesestudies, the co-venturers plan to re-use the suspended well. The tie backoptions include the nearby CMS infrastructure, in which Tullow and Gaz de FranceBritain have a non operated interest. COMPLETION OF THE SALE OF THE ALBA AND CALEDONIA ASSETS TO ITOCHU On 8 June 2005 Tullow completed the sale of two subsidiaries holding minorityinterests in the Alba and Caledonia oil fields in the Central North Sea toItochu Corporation for a headline consideration of $112 million. Thistransaction was first announced on 12 April 2005. Commenting today, Aidan Heavey, Chief Executive of Tullow said: "The achievement of first gas from Horne & Wren and the Opal discovery arefurther evidence of the excellent progress we are making in our Southern NorthSea gas business. In conjunction with a very strong UK gas market, these eventswill create significant value for Tullow and enhance our position within the CMSand Thames/Hewett core areas. We look forward to further success in thisregion." 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 MurrayChris Perry George Cazenove Notes to Editors Tullow's UK interests are primarily focused on gas in the Southern North Sea(SNS). The Group entered the SNS with the acquisition of a portfolio of assetsfrom BP in 2001. Since then, Tullow has substantially extended and enhanced itsposition through exploration drilling, active development, participation inlicensing rounds and a series of bolt-on acquisitions. Group interests includethe CMS and the Thames/Hewett areas, where it is the operator of the Hewettfields and of the Bacton Gas Terminal. A further significant step was takenwith the completion of the acquisition of the Schooner and Ketch operated assetson 31 March 2005. In Africa, Tullow has production in Gabon, Cote d'Ivoire, Congo (Brazzaville)and Equatorial Guinea. Tullow also has exploration programmes in Morocco,Mauritania, Senegal, Cameroon, and Uganda. In South Asia, Tullow has production and exploration interests in Pakistan andexploration activities in India and Bangladesh. 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 ExchangeRelated Shares:
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