Tullow Picks Up New Stake in Angola

Formal notice has been given to Tullow Oil plc by Angola’s state-owned entity, Sonangol, that it has been awarded a 50% stake in Block 1/06. The production sharing contract (PSC) is expected to be signed in August. Tullow and its partners in the block are responsible for a $10 million signature bonus.

The block is located in the Lower Congo Basin offshore Angola and covers an estimated 3,800 sq km. Block 1/06 contains three undeveloped oil fields, the Pitangueira, the Bananeira, and the Sapesapeiro. Tullow’s initial objective will be to evaluate the commerciality of these discoveries by drilling two wells on two of the structures in late 2007. The company will also conduct a 600 sq km 3D seismic survey and drill a third exploration well.