Tullow Ramps Up Uganda Ops

Q1 2012 was an active period for Tullow Oil in Uganda, the company was able to finally sign two PSAs with the Ugandan government in relation to two blocks in the Lake Albert Basin. The signing of the PSAs ended the delay in completing the farm down of its interests in Uganda to CNOOC and Total.

The completion of the farm down led to a significant program of exploration and appraisal drilling and testing recommencing and will include up to 20 exploration and appraisal wells, well testing, and the acquisition of further 3D seismic and gravity data.

In EA-1, Tullow said that a significant inventory of prospects have been identified in an unexplored trend to the west of the River Nile. The Omuka well will test this new trend and is due to spud in Q4. On EA-2 the Ngege appraisal campaign is under way with two out of four wells successfully drilled to date. In EA-3A, at the southern end of the basin, CNOOC plans to commence drilling the Kanywataba-1exploration well later this month.

Development planning is progressing through a number of integrated teams with our partners, and major production from the Lake Albert Basin is expected approximately 36 months after a plan for the basin-wide development is approved by the government. Concurrently, options are being considered to allow for the sale of small volumes of crude from well testing to industry, as well as some potential small scale power projects.