23rd May 2006 07:02
Tullow Oil PLC23 May 2006 News release Tullow Oil plc - UK Business Update 23 May 2006 - Tullow Oil plc (Tullow) announces first production from theSchooner-10 well in the UK, an update on UK drilling activity and a newproduction strategy for Horne and Wren. A detailed update on Tullow's business will be provided in our Trading Statementand Operational Update in early July. FIRST PRODUCTION FROM SCHOONER-10 (Tullow 90.35%) The Schooner-10 production well, the first of the Schooner-Ketch redevelopmentprogramme, commenced production through the Tullow-owned CMS infrastructure on16th May 2006 at a stabilised rate of 22 mmscfd. Further well stimulation isunder review. At the time of acquisition in March 2005, production rates fromthe combined fields were expected to decline to below 28 mmscfd within 12months. Tullow's facilities optimisation and well management programmes haveresulted in a sustained production rate of around 50 mmscfd and raisedfacilities uptime to over 98%. The addition of Schooner-10 will increase theproduction capability of Schooner and Ketch to approximately 70 mmscfd. Further production enhancements for the Schooner field are being completedbefore the Ensco 101 rig moves to the Ketch field at the end of the month whereit will drill three development wells - two new horizontal wells and a sidetrackof an existing well. It will then return to Schooner to drill a furtherdevelopment well. In addition to the ongoing redevelopment work, the Borgsten Dolphinsemi-submersible rig is scheduled to arrive at the end of May to drill the NWSchooner Extension appraisal well on the flank of the Schooner field. Ifsuccessful, NW Schooner would be developed via a subsea tie-back to the Schoonerplatform. UK DRILLING UPDATE Cygnus (Tullow 35%) The Cygnus appraisal well (44/12-2) has been suspended, having encounteredseveral gas-bearing reservoir zones and following a successful well test of theprincipal target, the Rotliegendes Lower Leman reservoir. The results of thewell test, the well logs and the core analysis are now being evaluated todetermine the commerciality of the discovery. This work is scheduled to becompleted by the end of the year and if deemed to be a commercial project, firstgas is anticipated in 2008. K4 (Tullow 22.5%) The K4 exploration well (44/23b-13), targeting a Carboniferous prospectanalogous to that drilled by the K3 (Kelvin) discovery well in 2005, commenceddrilling on 26 April. The K4 well, adjacent to Tullow-owned CMS infrastructure,is currently at 10,158 ft and is expected to reach the total depth of 13,800 ftin mid-June. HORNE AND WREN PRODUCTION STRATEGY (Tullow 50%) Horne and Wren, Tullow's first UK offshore operated development, commencedproduction in July 2005 and has achieved sustained rates in excess of 100 mmscfdgross. However, with Winter/Summer UK gas price differentials reachingunprecedented levels, the decision has been taken to shut in the fields duringthe summer months of 2006 and 2007 to maximise production over the next twowinter periods. This adds significant value to Tullow and contributes additionalgas to the UK market during periods of peak winter demand. Commenting today, Aidan Heavey, Chief Executive of Tullow said: "Today's announcement clearly demonstrates the strength of Tullow's acreageposition in the Southern North Sea. Over the last 12 months we have transformedthe Schooner and Ketch assets, made a total of four exploration discoveries andcompleted Tullow's first operated offshore development. Our increasing controlover our operations, allied to the ongoing strength and seasonality of UK Gaspricing, allows Tullow to optimise returns from assets such as Horne and Wren bymanaging production to meet periods of peak demand and pricing." 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 exploration and production 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 exploration and production in Pakistan and Bangladeshand 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 ExchangeRelated Shares:
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