Outlook

Following exceptional exploration and development success in Ghana and Uganda in 2008, resulting in a year-end reserves and resources upgrade of 296 million barrels, Tullow’s 2009 capital programme will primarily focus on fast-track development and high-impact exploration in these two countries. In particular, Tullow will be investing in Phase 1 of the Jubilee field development, to ensure it meets the target of first oil in the second half of 2010 and in an exploration and appraisal programme with a combined upside resource potential of over two billion barrels.

Given the current financial climate, investment in the non-operated areas of our African portfolio is expected to reduce in 2009 resulting in a short-term reduction in production. However, greater investment in these areas during 2010 is expected to reverse any decline in production levels.