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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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INTERIM RESULTS - 06
Finance - Tom Hickey
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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
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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
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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
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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
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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)
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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
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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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INTERIM RESULTS - 06
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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INTERIM RESULTS - 06
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?7/31/2019 Tullow Oil 2007 Interim Results Presentation (Final)
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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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INTERIM RESULTS - 06
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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INTERIM RESULTS - 06
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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INTERIM RESULTS - 06
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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INTERIM RESULTS - 06
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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INTERIM RESULTS - 06
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]