tullow oil 2007 interim results presentation (final)

7/31/2019 Tullow Oil 2007 Interim Results Presentation (Final)

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SlideTullow Oil plc 2007 Interim Results 1

Interim Results 2007Tullow Oil plc Building a Balanced Portfolio of International

Exploration and Production Assets


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Disclaimer

This presentation contains certain forward-looking statements that are

subject to the usual risk factors and uncertainties associated with the oil andgas exploration and production business.

Whilst Tullow believes the expectations reflected herein to be reasonable inlight of the information available to them at this time, the actual outcomemay be materially different owing to factors beyond the Groups control or

within the Groups control where, for example, the Group decides on a changeof plan or strategy.

The Group undertakes no obligation to revise any such forward-lookingstatements to reflect any changes in the Groups expectations or any changein circumstances, events or the Groups plans and strategy. Accordingly noreliance may be placed on the figures contained in such forward lookingstatements.


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Presentation Contents

Section Page

Introduction 4

Finance 6

Production and Development 14

Exploration 22

Conclusion and Q&A 38

Appendix 1 Strategy 40

Appendix 2 Africa 43

Appendix 3 Europe 50

Appendix 4 South Asia 54

Appendix 5 South America 59


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INTERIM RESULTS - 06

Introduction


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Transformation through exploration

Major step change in Tullows business

World class discovery in Ghana with billion barrel potential

Developments to more than double commercial reserves

Strong team in place to deliver business expansion

High-impact opportunities to continue growth

Continuous active portfolio management


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Finance - Tom Hickey


7/61SlideTullow Oil plc 2007 Interim Results 7

Results principally impacted by weaker UK gas price

2007 Interim Results summary

1H 2007 1H 2006 Change

Sales Revenue 284.9 m 310.7 m - 8%

Operating profit before exploration activities 124.2 m 178.5 m - 30%

Net profit 36.6 m 95.4 m - 62%

Basic earnings per share 5.12 p 14.72 p - 65%

Dividend per share 2.00 p 2.00 p No change

Cash generated from operations1 201.8 m 245.7 m - 18%

Net debt2 514.3 m 80.1m + 542%

1 Before working capital movements2Including all cash balances



2007 Interim Results Operational performance

Revenue down 8% to 285m

Production up 11% to 69,700 boepd* Balanced revenue mix Oil 57%:Gas 43%

Realised oil price - $56.1/bbl (1H06: $54.4/bbl)

Realised gas price - 36.9p/th (1H06: 53.3p/th)

Hedging achieved >50% premium over averageUK day ahead price

Operating Profit down 31% to 111m

Cash Operating Costs scope for 2H reduction

1H07 5.05/bbl (1H 2006: 4.85/bbl)

Depreciation charge influenced by Chinguetti,Schooner/Ketch, oil price

1H07 6.27/bbl (2006: 6.13/bbl)

Other Costs

Admin Costs include 2.5m IFRS 2, 2.0m forHardman Resources office closure

Exploration Write off 13.2m (2006 - 17m)

UK, Falklands, New Ventures

*Working interest basis

0

50

100

150

200

250

300

350

1H2006 1H2007

Revenue285m

Revenue311m

m

Operating CostGross Profit* DD&A Overlift

* Gross Profit before admin costs, exploration and disposals



Cashflow, interest and hedging

0

100

200

300

400

500

600

Cash Inflow Cash Outflow

334.9m

363.5m

m

Loan DrawdownOperating Cashflow* Foreign Exchange

Capex

Operating cashflow - 201.3m

175.5m reinvested in capital programmes Maintaining interim dividend at 2.0p/share

Interest charge - 23.2m (1H06: 9.4m)

Material net debt increase to 514.3m

Incremental debt drawdown of 50m post

Hardman Resources acquisition completion Hardman bridge fees amortised over 18

months likely to extend bridge

Amortisation of finance fees, abandonment -total 5.5 million

IAS 39 Hedging instruments

Oil and gas charge 15.3m mostly timevalue

Exchange loss 5.9m equal and opposite to2006 gain, no cash impact

201.3m

6.7m 77.2m

175.5m

Hardman acq Interest, tax & divi

* After working capital



Hardman Resources acquisition

Deal completed 10 January 2007

Hardman business consolidated in Tullow financials for 1H07 65 million new Tullow shares issued to electing Hardman holders

IFRS 3 Preliminary Fair Value Allocation exercise undertaken will be reviewed in 2H07

1Including Deferred tax Uplift of 164.3m

Integration of Hardman now completed Perth office closed

Uganda team increased

Trinidad licences under negotiation

Fair Value m

Chinguetti 79.2

Intangible Assets 640.7

Net Assets, including cash 39.5

Total1 759.4



0 100 200 300 400

2006

2007

Balance shifted due to larger appraisal

programmes and postponement of certainUK development programmes

2007 capital split 55:45 between

Development and Exploration

Capex acceleration driven by success in

Ghana and Uganda (together 28% of total2007 capex, 58% of overall exploration

expenditure)

H2 appraisal and exploration results will

be key driver of 2008 programmes

Well funded capital programmes

DevelopmentExploration

332m

415m

Uganda

NW Europe

Other Africa

2007 Forecast Capex by Core Area

415 million

10.8% (45.0)

32.5% (135.0)

16.9% (70.0)

Ghana

1.9% (8.0)

South Asia

South America

34.5% (143.0)

3.4% (14.0)



Investing in long term growth

Retain optimal stakes in high value assets

Uganda Block 2 dilution to fund development Kudu Potential additional farmout

Ghana Largest equity holder

Ongoing portfolio analysis and management Capital allocation 2008+

Match funding to asset lifecycles and characteristics Project Finance

Reserve based loans

Longer term debt

Maintain financial flexibility to maximise asset values



Financial summary

Underlying operating performance remains strong

Hardman complete and fully integrated

Effective Hedging policies generating and protecting value

Major capital programmes driven by exploration success

Investment focus on higher value assets

Preparing the business and finances for the long term


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Production and Development Paul McDade


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2007 Highlights Exploration success will deliver next phase

Exploration

World class discovery in Ghana

7 out of 7 successful wells in Uganda

Harrison continues CMS record of success

Accelerated appraisal programmes

Production and Development

Significant production growth in Africa and Asia

Managing capital allocation to UK business

Strong project delivery maintaining growth

Recent exploration success could doublereserves

Gearing up for major expansion Preparing for step change in African operations

Reorganising to ensure continued focus on:

Existing portfolio

Ghana & Uganda projects

Future growth


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Near term potential to double Commercial Reserves

Production

1H 07 Average = 69,700 boepd (13 mmboe) Current = 75,000 boepd

2007 production forecast = 72-75,000 boepd

Reserves

Commercial Reserves 212 mmboe Limited mid year review 46% replacement

Contingent Resources 279 mmboe Kingfisher near-wellbore (+27 mmboe)

Kudu 20% divestment (-29 mmboe)

Recent Ghana discoveries not included

Future

Ghana discovery alone has potential to double

reserves and production Further upside potential from Uganda and

Kudu appraisal and exploration programmes

Substantial Resources upgradesexpected at year-end

0

50

100

150

200

250

300

350

400

450

500

550

2002 2003 2004 2005 2006 1H 07

m

mboe

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

b

oepd

Reserves Resources Production

Total Reserves and Resources = 491 mmboe


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Strong production growth from African oil interests

Strong production performance

1H production of 39,210 boepd Forecast to average 40,000 boepd for 2007

Key assets performing well

Gabon production stable at 14,000 bopd Ceiba and Okume performing above expectations West Espoir development ahead of schedule

MBoundi development focused on water injection Mauritania redevelopment evaluation ongoing

Pipeline of developments

Gabon Ebouri development on schedule Gabon - low equity projects Onal, Oba, Obangue,

Tsiengui under way

Cte dIvoire - Espoir FPSO Upgrade sanctioned Angola - Pit-Ban appraisal 2H08 Kudu first appraisal well underway Uganda early production system sanction Q407 Ghana appraisal focussed on early sanction


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Ghana Already planning for a major development

Well Results to date

Discovery with billion barrel potential Light, 37 API, crude with favourable GOR High quality and productive reservoir sands

Fast-track appraisal under way

Appraisal programme being fast-tracked Planned appraisal will deliver five wells and

3D/4D seismic by early 2008

Additional rig slots being secured for 2008 2008 programme will focus on both discovery

and surrounding potential

Development plans initiated

Initial studies indicate large FPSO/subseadevelopment likely

Year-end dataset sufficient to initiate formalconceptual studies

Focus is on early sanction of the

full field development

WIDC 5

WIDC 4

PDC 5

PDC 4

WIDC 3

WIDC 2

PDC 1

PDC 2

WIDC 1

PDC 3

FPSO

Tanker OilOffloading

PDC Production Drilling Centre

WIDC Water Injection Drilling Centre

Field

Boundary

Conceptual Development Plan


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Uganda Focus to deliver first oil 2009 and exploration upside

Drilling 2 active rigs

Currently drilling Kaiso-Tonya appraisal wells Heavy rig on site for Ngassa and Kingfisher Light rig tender under way for 2008 programme Offshore drilling targeted for 2H 2008

Kaiso-Tonya EPS first oil 2009

Appraisal drilling and 3D seismic under way Crude analysis complete Pre-FEED facilities, topping plant and power

studies complete and tenders issued

Power transmission and road studies under way Project sanction 4Q 2007, first oil 2009

Oil Export Project planning ongoing

Initial scoping, refining and pipeline studies

Preparations to launch full scale oil exportproject upon further exploration success

Deliver first oil, inventorise basin

initiate full scale export project


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Sustaining a strong gas business in a challenging market

UK market environment

Relatively weak gas prices Contractor environment remains tight

Onerous tax regime for gas

Activity outlook to sustain production

Thurne onstream, Wissey on schedule and

Bure North awaiting approval Kelvin first gas Dec 07 with K4 and Harrison

as potential satellites subject to approval

Infill potential; Hewett, Boulton, CMSIII

Significant focus on managing operating costs

Marginal programmes deferred with capital re-

allocated to high impact projects

Sustaining production with

capital allocation limited to

high graded projects


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Strong delivery across production assets

Pipeline of global development opportunities

Recent success will deliver step change in reserves & production

Continued investment in developing our team will ensure focus on

Operational delivery from existing portfolio

Ghana & Uganda projects

Future growth

Production and Development Summary


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Exploration Angus McCoss


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67% global exploration success rate in 2007 to date

Suriname

5 wells

Uitkijk-2

Uitkijk-3

Uitkijk-4

Uitkijk-1Uitkijk-5

Ghana2 wells

Mahogany-1

Hyedua-1

86km CSEM69km CSEM

Namibia

1 well

Kudu-8 drilling

372km 2D

India

Uganda

2 wells

Nzizi-2

MPuta-3

759km 2D,326sqkm 3D

17km 2D

Tanzania

UK

3 wells

Harrison

Peveril

Acer

4,000km 2D

550KM CSEM

Falklands

568sqkm 3D

Mauritania
http://www.westerngeco.com/content/services/marine/multicomponent/index.asp?http://www.westerngeco.com/content/services/marine/multicomponent/index.asp?http://www.westerngeco.com/content/services/marine/multicomponent/index.asp?http://www.westerngeco.com/content/services/marine/multicomponent/index.asp?http://www.westerngeco.com/content/services/marine/multicomponent/index.asp?http://www.westerngeco.com/content/services/marine/multicomponent/index.asp?


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Kudu-8 well to appraise multi-TCF potential close to completion

Kudu-8 well update

Gas encountered on prognosis in primaryobjective

Log results to assess well productivityexpected late September

2-well appraisal programme

Development options to be reviewed

following the well results

Results could dramatically expand options

300/800 MW Gas to Power

Direct Gas Export

20% Kudu equity sold to Itochu

2 for 1 farm-in to appraisal wells Additional payments based on reserves

ultimately developed

Preferential funding terms for development

Strategic partner with significant LNGexperience and funding capabilities


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Basin-wide strategy

Leverage knowledge and influence Swiftly test billion barrel basin potential

Scaled development options

Hardman deal

Increases influence and materiality

100% and operatorship of Block 2

World-class basin potential

Seven wells : Seven successes

First oil & gas flow tested in Uganda

Highly productive reservoirs, 33 API

Challenges

Landlocked (1,300km from ocean)

Establish reserves threshold for export

Balancing long & short term goals

Uganda - Leading position in the Lake Albert Rift Basin


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Uganda - Preparing for commerciality in Block 2 (100%)

Kaiso-Tonya area

3D seismic expect complete end Nov 2007 Nzizi-2 & Mputa-3 drilled, Mputa-4 drilling

Early production sanction expected in Q4 2007

First oil targeted for 2009

Butiaba area

2D seismic near completion, structures identified Light rig tender ongoing

3+ exploration wells being prepared for 2008

Exploration of large lake structures

Significantly de-risked by Kingfisher-1

Rig contracted to drill Ngassa-1 and Kingfisher-2

Ngassa-1 expected to spud in October 2007

Lake drilling solution for 2008 being evaluated

Block 2 Ngassa & Lake 3D seismic (Kaiso Tonya) 1 Ngassa well (2007) Lake survey & rig tender

Block 2 - Butiaba 2D Seismic (2007) 2-4 wells (2008)

Block 2 Kaiso-Tonya 3D (500km2) seismic 3 onshore wells (2007) Early Production System


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Uganda Extending success into Blocks 1 & 3A (50%)

Block 1

Cooperation with Tullow operated seismic 2D seismic ongoing, structures identified

Light rig tender ongoing

1-2 exploration wells being prepared for2008

Block 3A

3D seismic acquired over Kingfisher-1discovery

Processing started and 3D interpretationplanned

Kingfisher-2 expected to spud in Q1 2008

Pelican planned for H2 2008

Block 1 2D Seismic (2007) 1-2 wells (2008)

Block 3A 3D/2D Seismic Kingfisher-1 Well (2007) Kingfisher-2 well (2008)


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Kaiso Tonya geological models 200 MMbo upside potential

Increasing understanding through appraisal

Reservoir: distribution and quality Net Pay: upside in thin beds and weathered

basement Column Height: Definition of hydrocarbon

contacts

Pre-appraisal model (35+ MMbo)

More isolated volumes No alluvial fans Isolated channels Shoreline deposits

More wells required to develop field

Possible alternative model (100+ MMbo) More connected volumes

Alluvial fans Channels extend to lakeshore No shoreline deposits

Wells in good communication

NziziMputa

Nzizi

Mputa

Pre-appraisal model

Possible alternative model


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Butiaba: further upside potential in Block 2

Building 2008 Programme

Waki-1 (1938) Up-dip potential

Block-1 & 2 Synergies Coordinated seismic and drilling

Rig tender closing

Onshore & Nearshore Accessible prospects

Benign terrain

Block 2

Infill SeismicPlanned

Block 22D Seismic

Acquired in 2007

Another Kaiso-Tonya?

Tullow Interest 100%


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High Impact Lake Prospects: Ngassa & Kingfisher

2007 2008 Nearshore Programme

Nabors 221 Rig On-site for October spud

Ngassa-1 90 day well

Contingent testing

Ngassa risk reduction

Nzizi-2 gas

Mputa-3 sands Kingfisher reservoirs / seals

First step towards realizing potential ofLake Albert prospects

Lake-bed coring initiated for rigtendering

Drilling H2 2008

Well Trajectory

MidSecondaryObjectives

DeepPrimary

Objectives

ShallowSecondaryObjectives


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West Africa Transform Margin Exploration Campaign

Building the business

First licence signed in 1996 Production from Espoir East and West Four CDI licences signed since 2004 Three Ghana licences added in 2006 Potential shallow water developments in

Ghana

Exploration

Mahogany discovery - June 2007 Hyedua discovery August 2007 North Tano appraisal - September 2007 Regional exploration and appraisal

campaign 2008/9


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West Africa Transform Margin Plays

Play fairway extends from Ghana to Cote dIvoire

First generation plays: Albian (Espoir / Baobab) Newly opened plays: Santonian (Mahogany / Hyedua) Frontier play potential: Campanian, Maastrichtian

SANTONIAN

Mahogany

Hyedua

ALBIAN

Espoir

Baobab

CAMPANIAN

MAASTRICHTIAN


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Ghana: World class discovery with further upside potential

June 07 announced Mahogany-1 discovery

August 07 announced Hyedua-1 discovery

5.3 km southwest of Mahogany-1

Extends Mahogany accumulation intoDeepwater Tano in down dip location(~361m total gross column)

3 appraisal wells and 910 sq km HI-RESseismic survey planned in 2007

Multiple follow-on prospects

Exposure to 1.0+ BBO


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Mahogany-Hyedua Accelerated Exploratory Appraisal

Objectives

Determine reservoir extent Appraise up-dip attic hydrocarbons Map potential below Campanian fans

Schedule

Mahogany-2 4Q 2007 Hyedua-2 4Q 2007 Mahogany-3 1Q 2008

Major reserve potential

P10: 1380 MMbo

P50: 480 MMbo

P90: 170 MMbo


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Exploration programme for next 12 months

Europe

4 wells

Cameroon

2 wells

Namibia

2 wells

Ghana4+ wells

Cte dIvoire

1 well

French Guiana

1 well

India

3+ wellsSuriname

5+ wells

Pakistan

2 wells

Uganda

5+ wells

Gabon

3 wells

Mauritania

2 wells

Tanzania1 well


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Exploration programme

Country Licence Prospect Interest Gross Upside Date/Status

EUROPE

UK 44/19b Harrison 22.50% 20 mmbo Q3 2007

UK SNS 2 Prospects 25%-50% 40 mmbo Q2 2008

Netherlands SNS 2 Prospects 30%-60% 40 mmbo Q3 2008

AFRICA

Namibia Kudu Kudu East 70% 600 mmbo Q2/3 2007

Uganda Block 2 Mputa-4 & Ngassa 100% 800 mmbo Q3 2007

Uganda Block 3A Kingfisher 50% 500 mmbo Q1 2008

Uganda Block 3A Pelican 50% 340 mmbo H2 2008

Uganda Block 2 Campaign 100% 475 mmbo Q3 2008

Gabon Nziembou MPano 40% 100 mmbo Q3 2007

Gabon Etame 2 Prospects 7.50% 60 mmbo Q2 2008

Gabon Azobe 1 Prospect 60% 10 mmbo Q3 2008

Ghana West Africa Transform 4 Appraisal Targets 20-50% 800mmbo Q3/Q4 2007

Ghana/Cdl West Africa Transform Campaign 20%-50% 1100 mmbo Q2-4 2008

Cameroon Ngosso 2 Prospects 40% 30 mmbo Q4 2007

Mauritania Offshore Campaign 20-25% 600 mmbo Q2 2008

Tanzania Lindi 1 Prospect 50% 200 mmbo Q2 2009

SOUTH ASIA

India CB-ON/1 Campaign 50% 250 mmbo Q1 2008

Pakistan Kohat Kohat East 50% 50 mmbo Q4 2007

Pakistan Kohat Kohat West 40% 20 mmbo Q1 2008

SOUTH AMERICA

Suriname Uitkijk Campaign (5+5) 40% 25mmbo Q3 2007

Suriname Coronie Campaign 40% 300 mmbo Q2 2008

French Guiana Guyane Maritime Matamata 77.50% 850 mmbo Q3 2008


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Exploration conclusions

Exploration successes in Ghana and Uganda create step change for Tullow

Focused exploration strategy continues to prove highly effective Key skills

Core geological plays

Well understood regions

Rigorous portfolio management and prospect ranking

Focused on growth through exploration - key component of a balanced strategy

In 2007 will spend 190 million on worldwide exploration


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Conclusion


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Focused growth from a strong portfolio

Clear, simple, repeatable growth strategy

Balanced portfolio

High quality staff

Strong cashflow and financial management

Focus on what we know

Long term plans and a long term view

Tullow is a flexible Exploration and Production business that can

offer maximum value creation in changing market conditions


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Appendix 1 Strategy


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E= Exploration D=Development P=Production

Netherlands

Portugal

United Kingdom

Angola

Cameroon

Congo (Brazzaville)

Congo (DRC)

Cte dIvoire

Eq. Guinea

Gabon

Ghana

Madagascar

Mauritania

Namibia

Senegal

Tanzania

Uganda

BangladeshIndiaPakistan

Falkland Isl.French GuianaSurinameTrinidad & Tobago

E

E

D P

E

E D P

E D P

E D P

E

E

E D P

D

E

E

E D

E D PEE D P

EEEE

EUROPE

AFRICA

SOUTH ASIA

SOUTH AMERICA

E

E

E D P

The Tullow Footprint

Europe ~28,000 boepd

UK gas focus 62 blocks 20 producing fields

Africa ~40,000 boepd 14 countries 53 licences 15 producing fields

Asia ~5,000 boepd 3 countries 12 licences 3 producing fields

South America 4 countries 12 licences


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PRODUCTION and DEVELOPMENT

EXPLORATION

ACQUISITIONS and PORTFOLIO MANAGEMENT

Tullows long term growth strategy

A track record of production growth and asset enhancement

98% reserve replacement over the last three years

Gearing up for a major expansion in African operations

Near-infrastructure and high impact exploration both delivering

Long term growth key campaigns based on core plays and skills

Continual rejuvenation of portfolio through new ventures

A strong track record of deal identification, execution and integration

Focus on value rather than production targets

Consistently high-grading the portfolio


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Appendix 2 - Africa


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Africa: developing a truly pan-African business

A continent with many opportunities

Mature basins where majors are exiting Significant areas currently unlicensed

A number of largely-unexplored basins

Strong knowledge base

Over 20 years of experience in Africa

Detailed understanding of African basins Good access to a range of opportunities

Extensive portfolio

Interests in 14 countries, 54 licences and15 producing fields

Major projects with billion barrel potentialin both Ghana and Uganda

Current production of over 40,000 boepd

Continually evaluating new ventureopportunities


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North Africa: unique acreage position

Overview

Tullow has a material position in Mauritania 9 blocks in Mauritania/Senegal Producing Chinguetti oil field

Tiof and Tevet oil discoveries

Banda and Pelican gas discoveries

Significant exploration potential

Considerable long term exploration potential in

this underexplored region

Key operational highlights

1H 2007 gross production of 16,900bopd C-18 infill well on production in March 3D/4D seismic acquired in March Further infill wells planned for 2008

Development options for Tiof and Banda underreview


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Stable production from Gabonese assets

Overview

Region where Tullow can apply its expertise inrevitalising mature assets

Interests in ~40% of all licensed acreage

12 producing fields

5 exploration licences

Back-in rights to 10 additional licences

Key Operational Highlights

Production stabilised around 14,000 bopd

Continued success from Niungo infill wells

MPano exploration well in Q4

Avouma field on stream at 7,000 bopd

Ebouri development due on stream in 2008

Recent acquisition added back-in rights to

3 Producing fields and 1 being developed

8 Exploration licences


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Kudu: developing upside opportunities

Kudu-8 well update

Gas encountered on prognosis in primaryobjective

Log results to assess well productivityexpected late September

2-well appraisal programme

Development options to be reviewedfollowing the well results

Results could dramatically expand options

300/800 MW Gas to Power

Direct Gas Export

20% Kudu equity sold to Itochu

2 for 1 farm-in to appraisal wells

Additional payments based on reservesultimately developed

Preferential funding terms for development

Strategic partner with significant LNGexperience and funding capabilities


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Appendix 3 Europe


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UK: Adding value in a challenging market

UK market environment

Relatively weak gas prices Contractor environment remains tight

Onerous tax regime for gas

Activity outlook to sustain production

Thurne onstream, Wissey on schedule andBure North awaiting approval

Kelvin first gas Dec 07 with K4 and Harrisonas potential satellites subject to approval

Infill potential; Hewett, Boulton, CMSIII

Significant focus on managing operating costs

Marginal programmes deferred with capital re-allocated to high impact projects

Focus on sustaining production with

capital allocation limited to high

graded projects

h h dd l h ll k


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Southern North Sea: adding value in a challenging market

CMS Area

Kelvin first gas Dec 07

K4 at development concept stage (sanction 4Q07)

Harrison discovery on prognosis

Nearby 2008 Cameron prospect de-risked

Potential for joint area development

Infill opportunities (Murdoch, Boulton, CMS III)

Follow-up development plans for S&K

Extension of play into Netherlands (E13 : Epidote)

Thames-Hewett Area

Thurne on production @ 50 mmcfd 31 August 2007

Wissey under development - first gas 3Q08

Hewett Rotliegendes development well Q1 2008 Bure N proposed for sanction well expected Q1/208

Further opex reduction expected in 2008 from de-manningHewett facilities & further operating efficiencies

Storage, LNG import and CCS projects actively studied forbeyond gas production phase on Hewett facilities

Hewett/Thames Area

CMS Area

Tullow non-operated

Tullow operated

P l i l i f M i i l


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Portugal: potential extension of Mauritanian play

Overview

3 blocks in Alentejo Basin awarded in 2007

Tullow 80%, with 2 local Portuguese partners

Basin is undrilled, oil shows encountered inwells in the onshore Lusitania Basin

Geological analogue to Mauritania

Regional seismic data shows numerous leads

Key operational highlights

Regional seismic interpretation completed

2D seismic data reprocessing ongoing

Detailed infill 2D seismic survey in 2008

Contingent 3D data acquisition in 2009

Earliest drilling 2010


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Appendix 4 South Asia

S th A i i ti f th


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South Asia: reinvesting for growth

A growth region for Tullow

Region of growing energy demand

Major high-impact exploration potential

Relatively low-cost exploration/operations

Limited competition for assets

Developments to fund exploration

5 exciting high impact exploration licences

Development projects in Pakistan andBangladesh delivered with follow-on potential

Future growth

Focused on organic growth

Extensive technical and geological knowledge

of South Asia

High Impact campaigns in India and Pakistanin 2007/2008

I di Si ll i i ift b i


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India: Six well campaign in proven rift basin

Exciting region with high impact potential

CB-ON/1 on trend between two proven basins Geologically analogous to Lake Albert Basin,

Uganda

Proven plays to north and south

2006 seismic has identified a number ofprospects

Prospect selection complete

Three firm wells followed by three contingentwells to commence in Q1 2008

Existing infrastructure makes wide range ofprospects commercially viable

Strong local market for energy


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Pakistan: considerable high impact upside potential


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Pakistan: considerable high impact upside potential

Overview

Five exploration blocks

Security issues have delayed work

Key Operational Highlights

Production Chachar came on stream in August

Full production in September at ~25mmscfd

Sara-Suri modestly increased throughcompression

High Impact Exploration Kohat seismic interpretation complete

2 wells planned

First well expected to commence in Q4 2007


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South America: Adding additional high impact acreage


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South America: Adding additional high impact acreage

Suriname

PSCs on Uitkijk and Coronie licences executed

Uitkijk - up to 10 exploration wells this year

Five drilled to date, hydrocarbons encountered

Development potential being evaluated

French Guiana

Tullow operates large offshore licence 77.5%

Preparing to drill substantial Matamataprospect in 2008

Likely to seek a farm-in partner

Trinidad

Successful bidder for two key blocks

Block 2a/b

Guayaguayare

Concluding negotiation on PSCs

Exploration operations planned for 2008


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Tullow Oil plc3rd Floor, Building 11

Chiswick Park, 566 Chiswick High RoadLondon, W4 5YS

Tel: +44 20 8996 1000

Fax+44 20 8994 5332

Investor Relations Contact

Chris Perry: [email protected]

tullow oil 2007 interim results presentation (final)

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