Tullow Announces Excellent Operational Progress Offshore Ghana

Tullow Oil plc  issues the following Interim Management Statement, for the period 1 July to 9 November 2010, in accordance with reporting requirements of the EU Transparency Directive. The Group will announce its full year Trading Statement and Operational Update on 20 January 2011.

OPERATIONAL UPDATE

Ghana

Excellent progress has been made on the Jubilee development in the second half of 2010 including the commissioning, testing and final installation work on the FPSO and subsea systems and the completion of four development wells. First Oil from Jubilee Phase 1, a major milestone in the development of Ghana’s oil resources, is expected in early December and a ceremony hosted by the President of Ghana to mark this momentous occasion is scheduled for later in December 2010. Initial production capacity of around 50,000 bopd is expected to be delivered before year-end and production is expected to ramp up to 120,000 bopd over the next three to six months.

The Owo-1 and Owo-1 sidetrack wells, drilled in July and September respectively, confirmed Owo as a major new light oil field with a penetrated gross oil column of some 200 metres. A three well programme is planned to commence this month to appraise both the Owo oil discovery and the adjacent Tweneboa oil and gas condensate accumulations which will further refine the range of resources. Development studies for the Owo and Tweneboa fields have also begun with a view to development commencing in 2012.

In September, Kosmos Energy, the operator of the West Cape Three Points block submitted a Declaration of Commerciality to the Government of Ghana for the southeast Jubilee area. A Plan of Development is expected to be submitted in February 2011. Standalone and Jubilee tie-back options are currently under consideration.

In October, the Onyina-1 well was drilled in the Deepwater Tano licence to explore a high-risk prospect in a secondary Campanian play between the Tweneboa and Jubilee fields. It intersected good quality sandstone reservoirs however, they were water bearing at this location.

An exploration drilling campaign is scheduled to commence in the West Cape Three Points licence in December commencing with the Teak prospect.

In order to create a more accessible opportunity for Ghanaian individuals and institutions to invest in the future of their oil industry through Tullow, the Group is planning a secondary listing, and issuance of up to four million new shares, on the Ghana Stock Exchange.

Tullow is a leading independent oil & gas, exploration and production group, quoted on the London and Irish Stock Exchanges (symbol: TLW) and is a constituent of the FTSE 100 Index. The Group has interests in over 85 exploration and production licences across 22 countries and focuses on four core areas: Africa, Europe, South Asia and South America.

In Africa, Tullow has production in Gabon, Côte d’Ivoire, Mauritania, Congo (Brazzaville) and Equatorial Guinea and two large appraisal and development programmes in Ghana and Uganda. Tullow also has exploration interests in Gabon, Côte d’Ivoire, Liberia, Sierra Leone, Mauritania, Senegal, Congo (DRC), Tanzania, Madagascar, Namibia and Angola.

Tullow’s European interests are primarily focused on gas in the UK Southern North Sea where it has significant interests in the Caister-Murdoch System and the Thames area. The company also has interests offshore the Netherlands.

In South Asia, Tullow has exploration and production in Bangladesh and exploration interests in Pakistan. In South America, Tullow has exploration interests in Guyana, French Guiana and Suriname.

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Source: Tullow, November  10, 2010;