Rest of Africa

Congo (DRC)

On the Congo (DRC) side of Lake Albert, Tullow has interests in a licence containing two blocks. The validity of the award of this licence was disputed during 2008, however Tullow continues to be confident in its title to this acreage.

Equatorial Guinea

Gross production from the Ceiba field and the Okume Complex exceeded expectations in 2008, averaging 38,000 bopd and 70,500 bopd respectively.

An infill drilling campaign on the Ceiba field was completed in April and flowline gas lift has been installed. On the Okume Complex, development drilling on the shallow water Elon field was completed in May while drilling on the deepwater Okume and Oveng fields is expected to continue until 2010 in order to maintain plateau production. Plans for further infill drilling on the Ceiba field and accelerated Okume Complex development drilling will be evaluated during the year based on oil prices and service costs.

Gabon

In 2008, production from Tullow’s Gabon assets averaged 12,760 bopd. Activity during the year focused on the optimisation of the current producing asset base and the development of the Ebouri, Tsiengui and Obangue fields. Net production is expected to average over 12,000 bopd for 2009 with first production expected from a number of new fields in 2009, offsetting natural decline.

On the exploration front, existing 3D data from the Tullow-operated Azobe licence is currently being reprocessed and an exploration well is planned for 2010. The operated Akoum licence expired in April 2008 and Tullow completed the sale of its 18.75% interest in the Gryphon licence to Addax Petroleum in December 2008.

Côte d’Ivoire

Gross production from the Espoir fields averaged 25,600 bopd in 2008. Development work on the West Espoir field was completed in January, with eight production and three injection wells now on line. Production is currently restricted to 22,000 boepd by the liquids and gas handling capacity on the FPSO. However, this figure is expected to be restored to 25,000 boepd in the fourth quarter of 2009 following completion of a facilities upgrade.

In blocks CI-103 and CI-105, 3D seismic has delineated several Jubilee-type leads and prospects. The geophysical techniques which proved so successful in Ghana are currently being used to further evaluate the data and to select the best prospects for drilling in 2010.

Blocks CI-107 and CI-108 were relinquished in May 2008 following analysis of 3D data which had been acquired over several leads. Results revealed that there was still considerable risk associated with exploration in this frontier area in western waters off Côte d’Ivoire.

Congo (Brazzaville)

During 2008, as part of an active reservoir management programme on the onshore M’Boundi field, 14 production wells and 13 injection wells were drilled and water injection capacity was increased to 46,000 bwpd. Gross production is currently over 42,000 bopd and a field redevelopment plan is being implemented with the aim of achieving over 50,000 bopd by the end of 2009. This programme includes an upgrade of the water injection capacity to 200,000 bwpd and improvements to the gas re-injection, surface processing and power generation facilities.

Mauritania

At the beginning of 2008, gross production from the Chinguetti field in Mauritania was under 12,000 bopd. A programme of three well interventions and two new infill wells was successfully completed during the year to increase production rates and access undrained reserves. By year end, the field was producing at rates in excess of 17,000 bopd. During 2009, production performance will be carefully monitored and analysed to evaluate if there is potential for a further drilling campaign in 2010.

Two appraisal wells were drilled on the Banda discovery in Mauritania in 2008. In April the Banda North West well encountered both oil and gas pay and pressure testing and sampling indicated that the well is in communication with the original Banda discovery well 2 km away. The Banda East appraisal well was then drilled 5 km up-dip from Banda North West in October and encountered the same oil and gas contacts seen in the other wells. The seismic and well data are now being incorporated into the geological model to determine the commercial potential of the field.

In February 2008, Tullow drilled the Khop-1 exploration well in Block 6 in Mauritania. Only minor oil shows were encountered and the well was abandoned. However, the well did provide important stratigraphic data pertaining to the prospective Cretaceous interval.

Namibia

During 2008, possible development schemes were reviewed for the Kudu gas resources offshore Namibia. A technical study on emerging offshore Compressed Natural Gas (CNG) technology was also carried out. CNG may offer an alternative development option to the previously preferred pipeline to shore plan and could provide a means of delivering gas to more than one regional market. Commercial analysis of the development options is being progressed with the intention of presenting a proposal to the government in 2009 in advance of entering into negotiations with potential gas buyers.

Tanzania

Processing of the 2D seismic dataset was completed in 2008 and two prospects have been identified in the Ruvuma Basin, Sudi-1 and Mikindani-1. Tullow plans to drill its first well in Tanzania, Mikindani-1, in the second half of 2009.

Liberia

Tullow continuously reviews acreage in the Equatorial Atlantic margins of West Africa and South America to identify possible analogues to the deepwater discoveries in Ghana. During 2008, offshore blocks LB-15, LB-16 and LB-17 were targeted as having high potential. A farm-in deal was concluded in January 2009 resulting in Tullow acquiring a 25% interest in all three blocks. A large 3D survey is currently being acquired to delineate high potential prospects identified on existing 2D data.

Angola

During the year, existing seismic was reprocessed and a further 600 sq km of 3D data was acquired. Further evaluation in 2009 will define the future drilling programme for offshore Block 1/06, which contains the Pitanguiera and Bananeira discoveries as well as additional prospects.

Cameroon

Tullow completed the sale of its interest in the offshore Ngosso licence to MOL during 2008.